S&P 500 Price Forecast – Stock Markets Continue to Tread Water Ahead of Jobs Number

The S&P 500 has rallied a bit during the course of the trading session on Wednesday, but at the end of the day we are still stuck near the 4200 level. This is an area that has been essentially sideways, as we are trying to break out to a fresh, new high. However, we have not managed to break above the recent highs, so we need to do that in order to continue the overall uptrend.

S&P 500 Video 03.06.21

All things been equal, if we do pull back a bit it is likely that the 50 day EMA comes into the picture, as it is offering dynamic support in a market that has been very strong. You could make an argument for a little bit of an ascending triangle as well, but really, I think we are simply waiting until we are going to get enough momentum to go to the upside. If we do break out to the upside, it is possible that we could go to the 4400 level as we are likely to continue the overall attitude of the markets from the longer term.

If we were to break down below the 50 day EMA, then it is possible that we could go looking towards the 4000 handle where I see a significant gap that has yet to be filled. Furthermore, it is a large, round, psychologically significant figure and of course it is likely that there are a lot of options being defended in that general vicinity. All things being equal, this is a market that I think you have to be looking at pullbacks as a potential buying opportunity more than anything else.

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