S&P 500 Price Forecast – Stock Markets Kick Off Quarter On Right Foot

The S&P 500 rallied to kick off the second quarter on Friday as we continue to see a lot of bullish pressure. That being said, I believe at this point in time we need to keep in mind that Good Friday will keep the underlying cash index close. If you have the ability to trade the CFD market or even the somewhat limited futures market during the day, you obviously are going to be looking to the upside.

S&P 500 Video 02.04.21

Quite frankly, I think that the Thursday session is simply going to set up for the Monday session, meaning that if we can stay above the 4000 level it is likely that stocks continue to rally a bit, perhaps reaching as high as 4100 rather quickly. That being said, it should be noted that midday the 4000 level is causing a lot of headaches, as it is an obvious large, round, psychologically significant figure. At this point, went the bulls will need is a daily close above that level, and especially one that is close to the top of the candlestick.

That being said, even if the market does pull back, there should be plenty of buyers underneath willing to get involved and take advantage of the market when it gets cheap. I have no interest in shorting this market, and quite frankly do not really have a set up where I would do so. I suppose if we were to break down below the 3800 level, I could get involved to the short side based upon buying puts, but I would not straight out short this market. Buying on the dips continues to be the way going forward.

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