S&P 500 Weekly Price Forecast – Stock Markets Continue to Look Bullish

The S&P 500 has rallied significantly during the course of the week, breaking out to a fresh, new high. Ultimately, this is a market that I think continues to see plenty of buyers on dips, which of course offers value every time we get one. The stimulus has been on everybody’s mind, and therefore headlines coming out when it comes to stimulus suggests that we will continue to look higher. The US dollar of course has been all over the place, so therefore it continues to cause some havoc here.

S&P 500 Video 25.01.21

When you look at the uptrend line underneath, that suggests that we are going to continue to find buyers on a dip. Longer-term, I believe that we are going to go looking towards the 4000 level based upon the consolidation area that we had previously been bouncing around and. The 400 point range underneath was important, so I think that we will continue to look at that as a potential measuring move. A short-term pullback will offer buying opportunities for traders going forward, and I believe that there is a massive support level underneath at the 3600 level as well.

I have no interest in shorting this market, because quite frankly this is a market that will continue to see a lot of volatility, but more than anything else it will see people looking to take advantage of all of that cheap and free money that seems to come towards Wall Street occasionally. Stimulus, quantitative easing, and the like have been going on for 13 years and I do not see that changing anytime soon as the cycle has repeated multiple times.

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