S&P 500 Price Forecast – Stocks Continue to be Thrown Around by Bonds

The S&P 500 was all over the place during the trading session on Thursday as the bond yields in America continue to spike occasionally. As long as that is going to be the case, you can count on a lot of volatility in the S&P 500. However, the first thing that I would tell you about Friday is that you probably need to stay out of the market anyway. We have what is known as “quadruple witching”, when four different asset classes have major options expirations going on at the same time.

S&P 500 Video 19.03.21

Looking at the chart, we are most obviously in an uptrend and I do not want to fight that attitude. I look for buying on dips opportunities, especially near the 3900 level or perhaps even the 50 day EMA underneath. Alternately, if we were to break above the 4000 level on a daily close, then I am willing to start buying their as well as it should continue to go much higher. At that point, I would anticipate that the market probably goes looking towards the 4250 level, possibly even the 4500 level over the longer term.

As far as shorting is concerned, I have no interest whatsoever in trying to do so but if we were to break down below the 50 day EMA, at that point I might consider buying puts, but you simply do not short the US indices as there have been plenty of examples of where the Federal Reserve will step in and do something to calm the markets down. All things been equal, this is a market that you can only by.

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