S&P 500 Price Forecast – Stock Markets Recover Thursday Losses

The S&P 500 rallied during the trading session on Friday to close out the week on a positive note, taking back the losses from the previous session, which of course is a good sign. That being said, the market is likely to continue to see noisy behavior, so I think it is probably only a matter of time before we get another pullback, but I also recognize that there are a ton of places underneath that could come into play and pick this market up.

S&P 500 Video 12.07.21

The first place that I pay particular attention to is the 4200 level, because the market goes tend to move in 200 point increments, and of course we have the 50 day EMA sitting there. After that, we have the uptrend line which of course has been very crucial for quite some time. Even further below there, we have the 4000 level which has a nice gap in it, which could come into play.

To the upside, the market is more than likely going to go looking towards the 4400 level next, as those 200 point increments come into play. Clearing that area allows the market to go looking towards the 4500 level, which of course is an area that will attract a lot of attention due to the fact that it is such a large, round, psychologically important round figure. Raking above that then opens up the possibility of the move to 4600 level, something that I anticipate seeing sooner or later. I have no interest in shorting, and it is not until we break down below the 4000 level that I would even consider buying puts.

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