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S&P 500 Weekly Price Forecast – Stock Markets Continue to Grind Higher

By:
Christopher Lewis
Published: May 28, 2021, 17:39 UTC

The weekly candlestick is rather impressive -looking considering that we had formed a couple of hammers from the previous two weeks, so it certainly looks as if the S&P 500 is ready to go higher.

S&P 500

The S&P 500 has broken above the 4200 level to show signs of continuation, and I do believe that at this point time the market is likely to make a fresh, new high. This would be an all-time high, which of course is a very bullish sign. Furthermore, the previous two candlesticks have been hammers, so this really looks healthy and therefore I think what we are seeing here is a significant attempt to work off some of the froth and perhaps try to build up enough momentum to break out even further. Short-term pullbacks reaching towards the uptrend line should continue to find plenty of pressure, and support. Even if we break down below there, I believe that the 4000 level is a massive support level that people will be paying close attention to.

S&P 500 Video 31.05.21

If we were to break down below the 4000 handle, I would anticipate a move down to the 3800 level, which is where the 50 week EMA is racing towards. We have had a nice move over the last several months, so I think we could see sideways action more than anything else. However, we do not have any situation at this point where you could be a seller of this market, and as a result it is worth looking at pullbacks as an opportunity. Longer-term, it looks as if we are going to go looking towards the 4400 level, as there is a 200 point increments to the move is that we have seen multiple times. I remain bullish, but I also recognize you need to find value.

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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