S&P 500 Price Forecast – S&P 500 Gives Up Early Gains
The S&P 500 has rallied initially during the trading session on Friday to reach towards the 4200 level, only to turn around and show signs of weakness. At the end of the day though, there is a lot of noise underneath that should continue to lift this market, not to mention the fact that the 50 day EMA and the uptrend line are sitting at the same place. With this being the case, it is likely that this dip will end up being a nice buying opportunity as value hunters continue to pile into the S&P 500.
S&P 500 Video 24.05.21
On the other hand, if we were to break above the all-time high just above, then the market could go looking towards the 4400 level. All things been equal, I think that we are still very bullish, but I recognize that the market is going to continue to be choppy, but that is nothing new. Longer-term, the Federal Reserve continues to flood the markets with liquidity so that in and of itself will drive the S&P 500 higher over the longer term.
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The one thing that you do have to pay attention to is the bond markets, because if yields spike suddenly, that has caused a little bit of trouble in this market a couple of times recently, but all things being equal I think that everything continues to look towards the reopening trade more than anything else, as we could see money come flooding into the market based upon the idea of consumers coming back to life.
For a look at all of today’s economic events, check out our economic calendar.