S&P 500 Weekly Price Forecast – Continue to Show Bullish Pressure

The S&P 500 initially pulled back during the course of the week but found support near the 3800 level to turn around and show signs of strength again. Ultimately, this is a market that continues to see the idea of reaching towards the 4000 level. The 4000 level course is a large, round, psychologically significant figure, and as a result I think that there is probably going to be a little bit of noise in that area. But if we break above the 4000 handle, then it is likely that we can continue to go much higher.

S&P 500 Video 15.03.21

Pay attention to the yield situation in the United States, as the bond markets have cause quite a bit of fear occasionally, but at this point in time the market likes the idea of buying dips on the longer-term trend. With that being the case, it is almost impossible to imagine shorting this market but quite frankly since a Great Financial Recession, the central banks around the world have done everything they can to support financial assets, with the Federal Reserve being one of the biggest culprits. With that, you can either be “correct”, or you can be profitable. Yes, I understand that there are plenty of reasons to think that we could see some type of economic disaster due to the recent pandemic, but at the end of the day you are best served to remember that stock markets have nothing to do with the real economic world. At this point, liquidity continues to push the markets higher.

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