S&P 500 Price Forecast – Wall Street Opens Up Week With Recovery

The S&P 500 has pulled back a bit during the course of the trading session on Monday but has recovered from the previous uptrend line that I have drawn. At this point in time, the market forming a bit of a hammer like candlestick does suggest that we are going to go higher, and perhaps go looking towards even bigger moves. I do think that it is only a matter of time before we see this market continue the upside move, and you could even make a little bit of an argument for an inverted head and shoulders kicking off. Nonetheless, we are in the midst of earnings season so it does make a certain amount of sense that we would see buyers get involved. With this, the “buy on the dip” mentality seems to be in full effect.

S&P 500 Video 19.10.21

The 50 day EMA underneath is starting to curl little higher, and it is likely to offer a bit of support, so we pull back towards that area think plenty of buyers will come back into the market. That being said, I think if we clear 4500, it is very likely that the S&P 500 will continue to go much higher, at that point in time, I would anticipate a lot of new inflow. Quite frankly, you guys know I do not short the S&P 500 but would be a buyer of puts if we break down. At the market breaking below the 4250 level, I would be a buyer of puts, but that is about as negative as I would get in this market.

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