S&P 500 Weekly Price Forecast – S&P 500 Continues to Show Buyers on Dips

The S&P 500 has spent most of the week in a very tight range, essentially going nowhere. What is worth noting is that traders do not seem to be overly concerned about the inflation numbers which were much hotter than anticipated. This is mainly due to the fact that traders believe that the Federal Reserve is going to let inflation run rather high for the time being, waiting to taper much later than anticipated. That being said, the market then recovered a bit after the initial push lower but remain somewhat stagnant around the 4235 handle. This is an area that has been a little bit of a magnet for price, and most certainly the 4200 level has been support.

S&P 500 Video 14.06.21

Looking at this chart, even if we do break down below the 4200 level it is very likely that the 4000 level will end up being the “floor in the market” going forward. If we were to break down below the 4000 level, then I might be convinced to buy puts in this market, but if we started to see a sudden break down in the S&P 500, I think you could probably count on the Federal Reserve stepping in to save everyone as they have for the last 13 years.

To the upside, believe the most likely target is going to be the 4400 level, as the S&P 500 tends to move in 200 point increments. Because of this, it is very important that we recognize that the target, but also recognize that there is a lot of volatility ahead as this market continues to chop. What is worth noting though is that we simply cannot fall.

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