S&P 500 Price Forecast – Stock Markets Continue to Show Resiliency on Dips

It appears that the S&P 500 is ready to continue going to the upside, after initially drifting lower on Monday. At this point I believe that we are getting ready to break out and go looking towards the 3350 area where there is a small gap, and then looking towards the 3400 level. The 3400 level is the all-time high and if we can break above there it is likely that we could go much higher. At this point in time I like the idea of buying dips as they occur, so the way that the daily candlestick closes will be crucial. The 3100 level underneath will continue to be massive support as well, assuming that we were to break down.

S&P 500 Video 21.07.20

Let us keep in mind that we are in the midst of earnings season, which of course can cause a lot of volatility but let us be honest here: The Federal Reserve is pushing the stock market higher with its quantitative easing measures. With this being the case, I think that the market is likely to see a lot of back and forth action, but with an overall upward slant. In general, I think that this is a market that is going to continue to see buyers at multiple levels underneath, and it is worth noting that I think the absolute “floor in the market” is closer to the 3000 level, which is where the 200 day EMA currently sits. Buying dips and/or breakouts will continue to be the best way going forward regardless of earnings.

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