S&P 500 Weekly Price Forecast – Stock Markets Recover After Initial Plunge for the Week
The S&P 500 has initially plowed lower during the course of the week, only to turn around and show signs of life again. The hammer that formed during the course of the week suggests that we have further to go to the upside and could very well take off again. After all, the market has shown itself to be resilient over the longer term, and therefore it is likely that we will continue to be bullish in general. After all, the Federal Reserve will do everything it can to lift the market, despite the fact that it has suggested that there is the likelihood of tapering by the end of the year.
S&P 500 Video 27.09.21
Now that the market has completely recovered from the FOMC meeting and statement, it is very likely that we will continue to see buyers come in based upon the fact that longer-term we always go higher. The market breaking down below the bottom the hammer would of course be very negative, and at that point in time I might be a buyer of puts. Nonetheless, it is very unlikely that will be the case and I do think that eventually we go looking towards the 4600 level. The market breaking above that level then opens up the possibility of a move towards the 5000 handle.
I would anticipate a little bit of noise, but now that we are done with this week, it certainly looks as if we are going to continue to find reasons to go higher. Quite frankly, even though the interest rates in America are rising just a bit, the reality is that interest rates are still very low, so that continues to favor stock markets.
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