S&P 500 Price Forecast – Stock Markets Trying to Break Out

The S&P 500 has shown itself to be resilient over the last several days, as it appears like we are going to continue to see upward momentum. The 4200 level of course is a large, round, psychologically significant figure, but perhaps more importantly is that we have the earnings season going on, with several of the world’s largest companies reporting this week. Because of this, the market might be a little bit hesitant but in the long run it certainly looks as if we are still very much in an uptrend.

S&P 500 Video 27.04.21

Breaking above the 4200 level allows the market to go another 200 points, and quite frankly I do think that it is only a matter of time before it happens. On the other hand, we could pull back occasionally over the next couple of days and that would not be a huge surprise considering that the Federal Reserve also has a meeting this week, so there are a lot of risks out there when it comes to where we go next. The market has been in an uptrend for quite some time, and it is worth noting that the 50 day EMA sits just below the 4000 handle, so it is probably going to offer a bit of a “floor the market” at that point, so any pullback to that region will be thought of as a potential value play.

If we were to break down below there, then it is possible that we could be looking at an opportunity to buy puts, but quite frankly at this point we will have learned over the last 13 years that shorting the market is almost impossible.

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