S&P 500 Price Forecast – US Stock Markets Continue to Grind Higher

The S&P 500 initially pulled back during the trading session on Monday, but as you can see, we have turned around to show signs of strength again. That being the case, it looks like we are going to break to all-time highs yet again, as the 4400 level has offered a little bit of support. Ultimately, the market is likely to go looking towards the 4500 level, which is a large, round, psychologically significant figure that a lot of people will be paying close attention to.

S&P 500 Video 27.07.21

Keep in mind that the market tends to move in 200 point increments, so pay close attention to those levels. Underneath, we have a 50 day EMA that sits right on top of an uptrend line, so both of those should come into the picture to offer plenty of support on any significant selloff. If we were to break down below there, then the market is likely to go looking towards the 4200 level, perhaps even the 4000 level after that. The 4000 level is where we have a small gap, and of course the 200 day EMA approaching. That of course is a huge deal.

Breaking down below there could be a very negative sign and could have me buying puts, but that is about as negative as I would get this market. After all, the Federal Reserve will come into the picture and of course save Wall Street if it gets into too much trouble. Ultimately, this remains a “buy on the dips” type of scenario.

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