S&P 500 Price Forecast – Traders Continue to Eye 4000

The S&P 500 has held up quite well considering that there were a lot of concerns out there about a fund being forced to liquidate huge positions on Friday. With that being the case, the market is likely to continue seeing upward pressure, but I think the real problem right now is that the 4000 barrier above is going to cause a certain amount of psychological problems. With that being the case, it is likely that we are going to see multiple attempts to get above there, but I do think that eventually we finally break above 4000.

S&P 500 Video 30.03.21

Once the market does break above the 4000 level, it is likely that we could go to the 4100 level rather quickly. After all, this is a market that is in a bullish run, and of course we saw a massive snapback on Friday so that tells me there is a lot of underlying demand for stocks out there. With the Federal Reserve liquefying the markets and supporting Wall Street is best they can, I do not see how this market breaks down significantly.

Even if we do break down a bit, I anticipate that the 50 day EMA will come into play, and therefore it is difficult to see a move below there. After that, we then have the 3800 level which is also supportive. If we were to break down below the 3800 level, then I might go looking to buy puts, but John that I think that dips continue to be buying opportunities going forward as they have been for what seems like ages. After all, this market has been disconnected with the underlying economy for some time.

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