S&P 500 Price Forecast – Stock Markets Looking to Break Out

The S&P 500 has initially rallied a bit during the course of the trading session on Tuesday but then turned around to give back the gains as the 4200 level continues to be very difficult to deal with. At this point, it is possible that we could see a little bit of a pullback to find buyers. The 50 day EMA is walking right along with the uptrend line, so I do think that it is only a matter of time before we would see people jumping into this market to take advantage of the overall uptrend. If we can break to a fresh, new high, that would also be very bullish as well.

S&P 500 Video 26.05.21

I have no interest in shorting this market, and if we break down below the 50 day EMA and the uptrend line, I will anticipate that the gap that sits just above the 4000 level which should be massive support. With that being the case, I think that there would be plenty of interest in that area. If we were to break down below there, then the market is likely to continue to go down to the 200 day EMA, but at that point I would be more or less encouraged to buy puts, not necessarily short this market. All things being equal, this is a market that is in an uptrend and you cannot fight that as it is so thoroughly ensconced in this market and it should continue to be one of the biggest drivers overall, which is just simple momentum that has been in favor of the buyers for ages.

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