S&P 500 Price Forecast – Stock Markets Showing Signs of Exhaustion

The S&P 500 has gone back and forth during the course of the trading session on Wednesday, as it looks like we are trying to figure out whether or not we can continue the move that we have seen as of late. Quite frankly, in the short term the market looks as if it is a little overdone, so a pullback would be welcomed. I would be especially interested in the S&P 500 somewhere closer to the 3850 level, and most certainly closer to the 3800 level. I do believe that this is a market that will continue to go higher based upon the longer-term trend, perhaps reaching towards the 4000 level.

S&P 500 Video 11.02.21

I have a target of 4000 due to the previous consolidation between 3200 on the bottom and 3600 on the top. That 400 point range suggests that we should add another 400 points to the S&P 500 on the breakout. That measures for the move to the 4000 level that I have suggested. This of course is a large, round, psychologically significant figure, and will attract a lot of attention. I think that we probably get a significant pullback from there, but we could eventually go above there as well.

To the downside, the uptrend line and the 50 day EMA both offer a significant amount of support, and therefore I think that what we are looking at is a “buy on the dips” type of situation, and I really do not have a scenario in which I am looking to short this market. I think volatility may come into the picture, but I still look at this market as one that you should be trying to find buying opportunities in.

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