S&P 500 Weekly Price Forecast – Stock Markets Have Strong Week

The S&P 500 has rallied significantly during the course of the week, as we head into the earnings season. This is a very bullish sign, and I think at this point we will probably have the occasional pullback that we can take advantage of. This is a market that is extraordinarily bullish, and the fact that we have gapped above the 4000 level suggests that we are going to go higher over the longer term. Nonetheless, I think pullbacks at this point in time are likely, and they need to be looked at as a potential buying opportunity.

S&P 500 Video 12.04.21

The fact that we are closing at the top of the candlestick suggests that there is still plenty of momentum, but at the end of the day earnings will of course have a lot of influence, so you need to keep in mind that the occasional shakeout is probably to be expected. Ultimately, I think that this is a market that we can get involved with on value more than anything else.

It is not until we break down below the 3800 level that I would be concerned about the market, and at that point I think what we are looking at is a “buy on the dips” type of situation, as it has been for multiple years. The 50 week EMA is currently sitting at the 3560 handle, so I think that would be the target on a breakdown, but I would not be a seller, I would be a buyer of puts. To the upside, I think that the market could go as high as 4250 in the short term, but like I said, I would anticipate a certain amount of noisy behavior during earnings week.

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