S&P 500 Price Forecast – Stock Markets Recover After the Initial Shock of Jobs Claims

Unfortunately, for Wall Street bad news is good news. Unfortunately for traders, the Initial Jobless Claims figure they came out during the early hours on Thursday were better than anticipated. This had people on Wall Street freaking out that the Federal Reserve might actually taper, something that they have not done and 13 years. With that being the case, it is very difficult for stocks to rally, but shortly after the announcement, we already started to see buyers come in to take advantage of the dip. After all, the Federal Reserve has already stated that they are willing to let the economy run hotter than usual, so therefore any talk of tapering is pure nonsense. This does not stop algorithmic or weak hands from pushing things around though.

S&P 500 Video 04.06.21

Underneath, I believe that the 50 day EMA should offer plenty of support, and therefore I think a lot of people will pay close attention to it assuming that we even get there. The 4200 level continues to be a bit of a magnet for price, so it is not a huge surprise to find that we are back there again. Above at the 4230 level, there is a significant amount of resistance, and breaking above that would send this market much higher. I anticipate that after the jobs number we may make a run towards that if the conditions are favorable. If that happens, then it is likely that the S&P 500 goes looking towards the 4400 level. I have no interest in shorting this market, the Federal Reserve is far too finicky for that to be the case.

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