S&P 500 Weekly Price Forecast – Stock Markets Continue to Press Higher
The S&P 500 initially pulled back during the course of the week but continues to see buyers on dips, as we are closing out the week towards the highs.
The S&P 500 initially pulled back during the course of the week but then turned around to form a bit of a hammer. The S&P 500 has continued to benefit from the flow of cheap money and central bank intervention. At this point in time, the market is likely to see plenty of value hunters going forward. The 4000 level underneath is the “floor the market”, and therefore think you need to think of that as a potential value play if we get there.
S&P 500 Video 26.04.21
If we were to break down below there, it would be a huge psychological defeat for the buyers, but right now it certainly does not look like that is going to happen anytime soon. In fact, it looks more likely than not that we are going to go looking towards the 4200 level and then possibly a breakout above there to continue going much higher. The market has been in an uptrend for some time, and therefore it makes no sense to try to fight it. Furthermore, the Federal Reserve will do whatever he can to keep the market afloat, thereby making this a “one-way investment.”
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Even if we did break down below the 4000 level, I think it is only a matter of time before buyers would return, perhaps somewhere near the 3800 level. If we were to break down below the 3800 level, then I would be a buyer of puts, but I would not be willing to short this market, due to the fact that the Fed will almost certainly come in and add liquidity measures to keep inflating the bubble.
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