S&P 500 Price Forecast – Stock Markets Recover Slightly on Wednesday

The S&P 500 has rallied a bit during the trading session on Wednesday, as the 4100 level looks as if it is going to offer a bit of support. That being said, I do think that we continue the uptrend and if the US dollar continues to fall, that should also help the S&P 500 going forward. To the upside, I think that we could probably go towards the 4200 level above, which was near the recent high. It is also the next large, round, psychologically significant figure, so I think there is a certain amount of attraction to it anyway.

S&P 500 Video 22.04.21

To the downside, even if we break down below the 4100 level does not change much for me, I will simply be looking to buy the market at cheaper prices. The biggest candidate that I see for support underneath would be where the gap is, sitting just above the 4000 level. Furthermore, the 50 day EMA is racing towards the 4000 level so that is yet another reason to think that perhaps there would be plenty of value hunters try to get involved in this market. With that being the case, I think it is only a matter of time before we get some type of supportive candlestick or just simple follow-through that we can follow.

I have no interest in shorting the market, and even though we are in the midst of earnings season, the general attitude of the market is positivity. Most earnings calls have been extraordinarily bullish, so that should continue to be reflected on this chart going forward over the next several weeks.

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