S&P 500 Weekly Price Forecast – Stock Markets Continue to Show Signs of Life
The S&P 500 has rallied significantly during the course of the week, showing signs of life again. Quite frankly, the S&P 500 continues to be pushed higher by the global reopening trade, and therefore it is more than likely going to continue to get more money flowing into it. If we do break out to an all-time high, it will just yet be another one that we have seen this year. The 4600 level would be a psychologically important figure, but quite frankly it is not that big of a deal. It is likely that we will continue to go much higher. The 4250 level underneath should end up being a major support level, and therefore I think any pullback towards that area will probably be bought into based upon the idea of offering plenty of value.
S&P 500 Video 25.10.21
If we were to somehow break down below the 4250 handle, then it is possible that I would be a buyer of puts. I do not necessarily think that happens anytime soon, but it is always a possibility. As long as we continue to see the Federal Reserve do what it can to support markets, it is likely that we continue to see more momentum. After all, the market is trying to price in the idea of a world that is going to continue to see plenty of buyers, so at this point in time it will be interesting to see just how much momentum we can continue to have. Buying on the dips should continue to be the best way going forward.
For a look at all of today’s economic events, check out our economic calendar.