S&P 500 Price Forecast: Stock Markets Levitate to Start Earnings Season

The S&P 500 was relatively quiet during the trading session on Monday as traders are starting to focus on earnings season more than anything else. That being the case, it looks like we are going to continue to see more upward pressure than down, but quite frankly I would not be surprised at all to see a little bit of a pullback. In fact, that pullback would probably be a good thing, as the market has gotten far ahead of itself. I believe that the gap underneath at the 4000 level makes the most sense, as it is not only a large, round, psychologically significant figure, but it is also an area that features that gap.

S&P 500 Video 13.04.21

Underneath there, then we have the 50 day EMA coming into the picture, which of course will attract a certain amount of attention in and of itself. With this, I think that pullbacks are value plays, but you can say that about the stock market for the last 13 years in general. Federal Reserve Chairman Jerome Powell stated over the weekend that the Federal Reserve was nowhere near slowing down the economy, so at this point in time it is all about the cheap money again. Once we get through earnings season, it is almost certain that buyers will take over again, but we may have the occasional choppy session. Look at those choppy sessions as potential buying opportunities, as it will make for value occasionally. That being said, we have gotten a bit ahead of ourselves so at this point in time any pullback will probably be welcomed by bullish and bearish alike. The last thing you should do here is chase the trade.

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