S&P 500 Price Forecast – Stock Markets Recover on Monday

The S&P 500 rallied a bit during the trading session on Monday to break above the top of the hammer from Friday. This is a bullish sign, and it does look like the market is trying to continue to reach towards the highs again, and perhaps even try to get towards the 4000 handle. With that being the case, the 4000 handle will offer a certain amount of resistance, and I think a lot of profit-taking. There are more than likely going to be a lot of options set there as well, so I would expect a lot of noise.

S&P 500 Video 23.03.21

To the downside, if we break down below the 3870 handle, then we probably go looking towards the 3800 level. After that, the 3700 level also has shown quite a bit of support. While we have made another high recently, the most recent high has not been as bullish looking as the previous two. This tells me that we are probably somewhat sideways in the short term, but with an upward bias.

I would not be a “buy-and-hold” type of trader right now, but I do think that there is an opportunity to get long for the short term. If and when we do break above the 4000 handle, then I think we more than likely go looking towards the 4100 level although I expect it to take several attempts to get above there. In general, this is a market that will continue to be very noisy, but at the end of the day if the yields in the bond market can remain somewhat stable or perhaps even fall, that will help the S&P 500.

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