S&P 500 Price Forecast – Stock Markets Testing Support UnderneathThe S&P 500 has fallen rather hard during the trading session as stock indices around the world got sold off. Nonetheless, we are approaching a significant support level.
The S&P 500 has fallen during the trading session on Tuesday, as we go looking towards the 4100 level. Quite frankly, the market does look a little bit scary from the short term, but from the longer-term perspective not much has changed. With that being the case, I think it is only a matter of time before the buyers return. In fact, the 4100 level is starting to show signs of support that people are trying to flock towards.
S&P 500 Video 12.05.21
To the downside, I see not only the 4100 level as import support, but I also see the 4000 level as obvious psychological support, right along with the gap that sits there. The 50 day EMA is between those two areas, so at this point in time I think it is only a matter of a little bit of stabilization before we go higher. As soon as this market stabilizes, one would think that the longer-term traders will jump in and take advantage of anything close to being cheap.
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With this being the case, I like the idea of buying the dips and getting long based upon the longer-term trend. I fully anticipate that the market is going to break out to a fresh, new high, as it is clearly supported from the longer-term outlook. The market has been in an uptrend based upon liquidity, and therefore it is likely that we will continue to see the same move as we have over the last 13 years. In fact, as I have written this article, the S&P 500 has recovered roughly 12 points. With this, it is a perfect example of how this market turns around everything.
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