S&P 500 Price Forecast – Stock Markets Have Another Strong Session

The S&P 500 shot higher during the trading session on Tuesday to wipe out the losses from the last several days. At this point, we are threatening the all-time highs and it is worth noting that the 3856 level is roughly where that is. If we can clear that level, then it is likely that we continue to see a lot of bullish pressure enter this market as it would be a significant break out. At this point, I think that we are going to continue to see the market reached towards the 4000 level over the longer term, based upon not only the overall momentum, but the fact that the 50 day EMA and the uptrend line that have both offered significant massive support.

S&P 500 Video 03.02.21

To the upside, the 4000 level is a target not only due to the fact that it is the next large, round, major figure, but it is also the measured move based upon the previous consolidation area between the 3200 level and the 3600 level, extrapolated from the breakout. Obviously, you cannot short any of these indices anyway because they are not equally weighted. In other words, they are not meant to fall for any significant amount of time, because the S&P 500 has become the “S&P 7.”

After all, the majority of the weighting is all of the household names that everybody piles into on Wall Street. Expect volatility as we are in the midst of earnings season but at the end of the day nobody really cares about earnings, it is about volatility and more importantly, liquidity. I do not even have a scenario in which I am a seller, but if we break down below the 3600 level it would catch my attention.

For a look at all of today’s economic events, check out our economic calendar.