S&P 500 Weekly Price Forecast – S&P 500 Continues to Sit Sideways
The S&P 500 initially tried to rally during the course of the week but gave back the gains as we continue to simply grind sideways in what would have been the height of the summer trading season, so it makes sense that there is a little bit of lackluster action. I think that probably continues to be the case, but when you look at the longer-term chart you can see that we have been in an uptrend for quite some time now. Ultimately, this is a market that has a massive uptrend line as well, so if we break down below there it is likely that we continue to see even more pressure to the downside. That being said, the 4000 level should be a significant amount of interest in that area, as we see a bit of a gap there.
S&P 500 Video 19.07.21
To the upside, if we can break above the 4400 level then it is likely that we go looking towards the 4500 level, which is the next psychologically important level. The market does tend to move in 200 point increments though, so do not be surprised at all if we end up going to the 4600 level. I just suggest that perhaps the 4500 level will cause a little bit of a bump along the way.
The bond markets have been seeing a significant inflow, so it does suggest that perhaps people are trying to get away from the stock market and head into the safety of bonds. This does not necessarily suggest that we are going to get a massive meltdown, but I think a short-term pullback is probably in the cards.
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