S&P 500 Price Forecast – S&P 500 Toying With New Highs
The S&P 500 has gone back and forth during the course of the trading session on Wednesday as we continue to hover just below the 4600 level. At this point, the market looks as if it is trying to build up enough momentum to continue going higher, and if we do break above 4600, it more than likely should send the S&P 500 much higher. The market has been very noisy, but we might be just a little bit overdone at this point. Nonetheless, you can clearly not short the S&P 500, you have not been able to do that for at least 13 years for any significant amount of time.
S&P 500 Video 28.10.21
When you look at this chart, you can see that the 50 day EMA is sitting just above the 4425 area, and is curling higher. That suggests that the market is going to continue to find buyers and will eventually shoot to the upside. The attitude of traders will continue to be one of bullishness, but the occasional pullback should be thought of as a bit of a gift, in a scenario where the market only goes one direction over the longer term. With the Federal Reserve out there providing as much liquidity as possible, it does make sense that we would continue to see this market rally.
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Looking at the chart, the 4250 level is a major support level that I believe defines the overall trend. If we were to break down below that level, then it might be a scenario where I would be a buyer of puts, but that is about as bearish as I would get it. The attitude of the market is one that any time we pull back a couple of percent, the naysayers come out in full force but the professionals continue to buy.
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