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

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.