S&P 500 Weekly Price Forecast – S&P 500 Has Strong Week

The S&P 500 has shot higher during the course of the week to break out to fresh new highs. Ultimately, the market looks as if it is ready to go looking towards the 4400 level, based upon the fact that the S&P 500 does tend to move in 200 point increments. Underneath, you can see that I have drawn a significant trend line that the market has been hugging, and therefore if we break down below there then I need to start looking for support, which I believe is to be found at the 4000 level. This is because not only is it a large, round, psychologically significant figure, but there is also a gap sitting in that same general vicinity.

S&P 500 Video 28.06.21

After that, the 3800 level could be interesting, as the 50 week EMA is sitting in that general vicinity could be worth paying attention to, as the markets have a propensity to pay close attention to that indicator. All things being equal, I have no interest in shorting this market, but would be a buyer of puts if we break down below the 4000 level, and especially so if we break down below the 3800 level. All things been equal though, as the Federal Reserve tends to step in and start jawboning the market back to the upside, it is likely that we will see a shot higher if there is any hint of somebody on Wall Street losing a significant amount of money.

That being said, yet to be very cautious about putting too much money to work to the downside, as the market has been rigged for the last 13 years. That being said, I look for dips as buying opportunities just as I would think of breaking above the top of the candlestick as a resumption of the bullish trade.

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