S&P 500 Price Forecast – Stock Markets Sideways

The S&P 500 has fallen initially during the trading session on Tuesday to reach down towards the 3900 level. That of course is a large, round, psychologically significant figure that a lot of people would be paying close attention to, and therefore it should not be a huge surprise that we bounced a bit from there. However, it will be interesting to see whether or not Jerome Powell says anything to rattle the markets over the next couple of days. What is particularly telling is that more in his prerelease statement there was no mention whatsoever about bond yields.

S&P 500 Video 24.03.21

There is of course a major barrier in the form of 4000 above, both from a psychological and options barrier standpoint. I do not think we get above there in the short term, at least not without some type of catalyst but I think we will eventually try to make that move. If and when we can break above the 4000 handle, it is likely that we go much higher. I think it is going to take a lot of effort to do so, so I would anticipate noisy trading between now and then.

On the other hand, the 3900 level will continue to be supportive just as the 50 day EMA and the 3800 level will be. With that, I think that you can continue to buy pullbacks that show signs of support underneath. If we were to break down below the 3700 level, I would be a bit concerned, but at that point in time I would probably buy puts in preparation for some type of “flash crash.”

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