S&P 500 Price Forecast – Stock Markets Finding Buyers on Dips
The S&P 500 has fallen a bit during the course of the trading session on Tuesday but found buyers again on the dip to show signs of life. We continue to see a lot of “buy on the dips” type of trading, and one would think that it is only a matter of time before we rise again. The 50 day EMA above should continue to offer a significant amount of resistance, but I do believe that it is probably only a matter of time before we try to break above not only that, but the most recent downtrend line.
S&P 500 Video 13.10.21
Underneath, I see a significant amount of support down at the 4250 handle, which is a significant area that a lot of traders have been paying attention to and could kick off put buying by myself. I do not short this market as you know, but I am willing to play the options market in that scenario. If we break above the highs of the last couple of sessions, then I think we go looking towards the 4500 level, and then possibly even the 4600 level after that. Either way, I think you will probably see a lot of choppy behavior over the next couple of days, but I do not necessarily think that the stock market is anywhere near melting down, despite that the headlines continue to cause issues.
After all, the stock markets have absolutely nothing to do with the economy, and everything to do with monetary flow in the system. As long as money is plentiful, it will look for places like the stock market to sit.
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