S&P 500 Weekly Price Forecast – Continue to Grind Even Higher

The S&P 500 has rallied slightly during the course of the week, as we continue to see money flow into Wall Street. Quite frankly, with nothing paying any type of yield out there, it does make sense that we would see stocks attract money. We also have more stimulus coming, so that something that is worth paying attention to as well as the Federal Reserve willing to prop up Wall Street every time it runs into trouble.

S&P 500 Video 15.02.21

With that in mind, you have to look at any pullback as a buying opportunity and it certainly looks as if we are going to go looking towards the 4000 handle eventually. After all, it is a large, round, psychologically significant figure that a lot of people will be looking towards, so it is difficult to imagine a scenario where we do not get there given enough time. That being said, I think that what we are about to see is short-term pullbacks bought into, as the market has been a “one-way bad” for several months now.

Unless of course the US dollar spikes drastically, it is difficult to imagine a scenario where the S&P 500 breaks down. In fact, I do not have any interest whatsoever in trying to short this market, because quite frankly it is a market that continues to find value hunters every time we pull back. Furthermore, the candlestick before this one was a massive engulfing candlestick, so in and of itself it was a signal to start buying. With that being the case, I think that every time we pull back there will be plenty of people willing to jump in, especially as we have a nice uptrend line underneath as well.

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