S&P 500 Weekly Price Forecast – Stock Markets Continue to Move Higher After Jobs Number

The S&P 500 has shown itself to be bullish over the course of the week, and now that we have gotten the jobs number out of the way in the United States, the market can breathe a reasonable “sigh of relief” and continue rallying as the US economy continues to recover. If that is going to be the case, the S&P 500 will continue to go higher, as we have been hugging this uptrend line. That being said, if we were to turn around and take out the candlestick from the previous week, then it would be a very negative sign, but I still think there is a bit of a “floor the market” near the 4000 handle.

S&P 500 Video 05.07.21

To the upside, I believe that the market probably continues to move in 200 point increments, as we have seen happen multiple times. All things being equal, I do not have any interest in shorting this market, but if we were to break down below the 4000 handle, then it is possible that I would be a buyer of puts, but I would not get any more aggressive to the downside than that, because quite frankly the Federal Reserve has this bad habit of jumping in and interfering if things get just a bit negative.

Expect a lot of volatility, but I still think that pullbacks will be thought of as buying opportunities in this market, and probably continues to be so for the foreseeable future as central banks around the world continue to stimulate economies.

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