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

The S&P 500 has rallied a bit during the course of the trading session on Friday to reach towards the 4600 level. The 4600 level of course is a large, round, psychologically significant figure, but at the end of the day it is yet just another big level. Sooner or later, we will break through this level and go looking towards much higher highs. Underneath, the 4500 level should offer a significant amount of support, and therefore I think it is only a matter of time before buyers would come in to pick up the dip.

S&P 500 Video 01.11.21

The 50 day EMA currently sits at the 4444 level and is curling higher. With that in mind, the market is likely to continue seeing more of a “buy on the dips mentality” going forward, especially as earnings season has gone so well. Beyond that, bond yields are nowhere near enough to make up for inflation, so with that being the case it makes sense that stocks continue to be forced higher. Liquidity measures continue to show the way going forward, a market that is more than likely going to break to the upside over the longer term.

On the other hand, if the market were to break down significantly, the 4250 level would be an area that we have to pay close attention to. The 4250 level being broken down below would more than likely be a put buying opportunity, but that is about it. The 50 day EMA sits at the 4189 level further back in that area, so I would not short the market aggressively in a naked position.

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