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S&P 500 Weekly Price Forecast – Stock Markets Hit All-Time High Yet Again

By:
Christopher Lewis
Published: Oct 29, 2021, 18:01 UTC

The S&P 500 has hit all-time highs yet again during the course of the week, breaking towards the 4600 level.

S&P 500 Weekly Price Forecast – Stock Markets Hit All-Time High Yet Again

The S&P 500 continues to show plenty of bullish pressure, as the markets have price in the idea of the reopening trade continue in, and of course earnings season has been rather positive so this makes a certain amount of sense that the S&P 500 will move right along with it. Short-term pullbacks will continue to find plenty of buyers, especially near the 4500 level. This is an area that is psychologically important, but also was where we had broken above previous resistance.

S&P 500 Video 01.11.21

To the downside, the 4250 level is a major support level that traders will have to pay close attention to. If we were to break up that level to the downside, it would actually end up breaking structure, a very negative sign. Nonetheless, I would never short this market but could perhaps be a buyer of puts below that level. The 50 week EMA currently sits at the 4125 handle, and is rising, so I think that there is only so much in the way of downside momentum available.

At this point in time, I continue to be a “buy on the dips” type of trader, and I believe that most investors are right there with me. The fact that the candle is closing towards the top of the range is of course a very bullish sign. This shows that there is real conviction behind the market, and as a result I think that we only have so much in the way to go to the downside before value hunters will come in and lift the market going forward. The uptrend continues to be very much encased in the market.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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