S&P 500 Weekly Price Forecast – S&P 500 Continues to Look at Supported

While we have had a lot of drama crossing the wires recently, it is worth noting that we are still very much in an area that is widely supported by traders in the S&P 500, so I think we are more than likely going to see a bit of recovery sooner rather than later. I think that buying on the dips continues to work, despite the fact that a lot of people have freak out about the idea of the Federal Reserve tightening. That being said, the tightening is not coming anytime soon so it is easy to suggest that perhaps this is a bit overdone.

S&P 500 Video 21.06.21

The 4000 level underneath should be a massive support level as far as I can see, and you can see that multiple times we have seen a bit of buying pressure all the way down to the 4000 level, so I do not have any interest in shorting this market. If we break down below the 4000 level then it is possible that we could see the idea of buying puts makes sense, but beyond that I do not have any short-term or short trading ideas in this market.

Given enough time, I do believe that we will break out to fresh, new highs, just as soon as everybody comes down about the Federal Reserve and what it has recently said. Longer-term outlook is still very much favorable for stocks at the Federal Reserve is massively accommodative, which is the only thing that has pushed docs for the last 13 years.

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