S&P 500 Price Forecast – Stock Markets Continue to Struggle

The S&P 500 initially rallied during the trading session on Tuesday but then pulled back to show signs of exhaustion. The market continues to look at the area above the 4200 level as being difficult, and at this point in time if we were to turn around and break out above the highs, then it is likely that we go looking towards the 4400 level. Pullbacks from here should be a buying opportunity from what I can see, especially with the 50 day EMA underneath rising to show dynamic support. At this point in time, I think this is a market that will eventually offer value the people are willing to get involved with.

S&P 500 Video 02.06.21

The 4000 level underneath would be the absolute “floor in the market” were I think the uptrend is supported. There is also a gap there, not just the large, round, psychologically significant figure. At this juncture, I am looking for an opportunity to get long perhaps based upon the value that a pullback offers. The market does tend to move in 200 point increments, so I think what we are looking at here is a simple continuation of this noise.

There are some out there that will be screaming “double top”, but at this point I think the last 13 years have taught us that you do not short this market. If we break down below the 4000 level then maybe you can buy puts, but beyond that I would have no interest in trying to get bearish this market because that has been a fool’s errand due to the liquidity measures and the overall bullish attitude of this marketplace.

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