SP 500 Price Forecast – Stock Markets Pull Back

Updated : Feb 17, 2021, 18:46 UTC2min read
Stock markets pulled back a bit during the trading session on Wednesday to reach down towards the 3900 level yet again as the interest rates continue to rise in the 10 year note.
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The S&P 500 has pulled back a bit during the trading session on Wednesday, as we had formed a shooting star during the previous session. I believe that the market is probably going to go looking towards lower levels, possibly the 3850 handle, maybe even the 3800 level. The 3800 level will feature the 50 day EMA, and therefore I think a lot of people will be paying close attention to it. I do think that eventually we find buyers on this debt, but we need to get lower in order to find an of value for people to be attracted to it. Quite frankly, we had been running a little too hot, and of course with interest rates rising in the 10 year note, that has a major influence on the market as well.

To the upside, I do believe that this market will go looking towards the 4000 handle, but it may take a pullback in order to build up enough momentum to get there. The measured move from the consolidation that we had broken out of previously does suggest a move to the 4000, as we had been using the 3200 level as support and the 3600 level as resistance.

Looking at the area just below the 3900 level, it will more than likely be somewhat supportive, but even if we break down below there, I think there will be plenty of “buy on the dips” type of traders to get involved and push this market to the upside as it has been multiple times in the recent past. Ultimately, I think that this is a market that continues to move on liquidity more than anything.

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