S&P 500 Price Forecast – Stock Markets Pull BackThe S&P 500 has pulled back significantly on Tuesday as we continue to see the 4200 level offer a massive amount of resistance.
The S&P 500 has pulled back a bit during the course of the trading session on Tuesday as the 4200 level continues to be a massive resistance barrier. The 4200 level seems to be a bit of a brick wall at this point in time, but I do think that there will be an attempt to break above there. At this point in time, the market will more than likely continue to see a lot of buyers underneath based upon value, as we have been in a massive uptrend. That being said, the size of the candlestick does suggest that maybe we have a little further to go, and the 4100 level would make quite a bit of sense for a support level. If we break down below there, then we have the 50 day EMA which is sitting right at the gap near the 4000.
S&P 500 Video 05.05.21
If we can break above the 4200 level, the market is very likely to go looking towards the 4400 level as this market tends to move in 200 point increments. That of course is something that we have observed all the way up, and as we are in a massive uptrend there is no reason to think that we are going to change anytime soon. Liquidity continues to drive the market higher, and therefore it makes quite a bit of sense that we would see a continuation of what has been the case for so long. With this being the case, I like the idea of looking for value and it is possible that we will in fact see that continue to be the case. I have no interest in shorting this market.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For a look at all of today’s economic events, check out our economic calendar.