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S&P 500 Weekly Price Forecast – S&P 500 Finds Trend Line Support Again

By:
Christopher Lewis
Published: May 21, 2021, 17:59 UTC

The S&P 500 has seen a significant bounce from an important trend line, to end the week on a very positive note.

S&P 500 Weekly Price Forecast – S&P 500 Finds Trend Line Support Again

The S&P 500 has initially fallen during the week to reach towards the uptrend line. We have also bounced significantly to show signs of life. After all, there is a massive trend to the upside that we have been in for several months. The shape of the candlestick is also a hammer, which leads more credence to the idea of going higher. The recent all-time highs are just above, so despite the fact that there was a sharp sell off earlier in the week is of no substance in general.

S&P 500 Video 24.05.21

The uptrend line being broken would be negative, but there is also a gap and structural important at the 4000 level. The market would almost certainly show interest at that level as well. The Federal Reserve continues to flood market with liquidity, which of course suggests that the market could continue to go higher based upon that idea alone. The market is likely to break out from what I have seen, and at this point the 4400 level is likely the next target.

After that, the 4500 level should be of interest as well. The 4500 level would be of psychological interest as well, so with this the market should have a solid target. If the market was to break down below the 4000 level, then its likely that we could go towards the 3800 level. That is an area that is attracting the 50 EMA as well, which could bring in support going forward. The market is more than likely looking for a reason to find value at any cost. I suspect you could be looking at another ‘lurch forward.’

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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