S&P 500 Price Forecast – Stock Markets Making All-Time Highs Again

The S&P 500 has rallied a bit during the course of the trading session on Friday to form an all-time high yet again. We are above the 4250 level, which opens up the possibility of a continuation of the overall bullish pressure. The 50 day EMA has offered significant support multiple times, with the most recent being tested due to the hawkish comments coming out of the Federal Reserve. However, since then they have walked those back as Wall Street demanded, and now it looks like we are ready to continue. The uptrend line has followed right along as well, and therefore I think it is only a matter of time before we see pullbacks bought into.

S&P 500 Video 28.06.21

Looking at this chart, it is obvious that we continue to see movement in 200 point increments, so that leads me to believe the 4400 will be targeted given enough time. That being said, if we were to break down below the uptrend line and possibly even the 50 day EMA, then I think we could go looking towards the 4000 level. The 4000 level is a large, round, psychologically significant figure, which in and of itself will attract a certain amount of attention. However, there is also a gap in that region that people will pay close attention to, so I think that is essentially your “floor in the market.”

Breaking down below that barrier would be very negative, and at that point I would be a buyer of puts, because if this market falls to quickly, the Federal Reserve will more than likely step in and saying something. This way, you can benefit from profiting on the way down, but keep your risk limited.

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