S&P 500 Price Forecast – Stock Markets Testing Major Figure Again

The S&P 500 has initially dropped ever so slightly only to turn around and slam into the 4200 level. If we can close above there, then it is very likely that the S&P 500 will continue to go higher, perhaps reaching towards the highs again and breaking out from there. After all, liquidity continues to be a major influence on the market, and as the crypto currency markets have stabilized a bit, that gives us a possible opportunity to see a certain amount of value hunting.

S&P 500 Video 25.05.21

The 50 day EMA is sitting at the uptrend line that we have been following for quite some time, and therefore it is likely that we would find reasons to go long on dips as it should offer a significant amount of value. The uptrend line of course is something that a lot of traders have been paying attention to. Ultimately, this is a market that continues to find buyers on dips, and I do not see any reason to fight that attitude anytime soon.

Longer-term, I believe that the market probably goes looking towards the 4400 level above, as it does tend to move in 200 point increments. With that in mind, I have a target that I also believe that we continue to go higher over the longer term regardless. If we did break down below the 50 day EMA, then I think at this point we would probably go looking towards the 4000 handle. The 4000 handle also features a nice gap, so that in and of itself should be thought of as a “floor the market” for the short term.

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