S&P 500 Price Forecast – Stock Markets Sputter
The S&P 500 has shown itself to struggle bit during the trading session on Wednesday, but quite frankly we have shot straight up in the air. The recent action suggests that pullbacks will be bought into, as the market continues to show the overall uptrend. Underneath at the 50 day EMA we should continue to see plenty of support, not only due to the moving average been one that a lot of people pay attention to, but the fact that we have an uptrend line there as well. To the naked eye, you can see clearly that we have been in a channel going higher this entire time.
S&P 500 Video 04.02.21
To the upside, if we were to break above the 3850 handle, then it opens up the possibility of the S&P 500 going towards the 4000 level. The 4000 level of course is a large, round, psychologically significant figure, and should be treated as such. In other words, I do think that eventually we reach there, but I also think that it would probably cause a significant amount of resistance. Based upon the previous consolidation area between the 3200 level on the bottom and the 3600 level on the top, if you extrapolate that 400 point move out from the consolidation breaking, that also gives you a target of 4000.
Your capital is at risk
Keep in mind that we are in the midst of earnings season so we may get the occasional bounce around, but longer-term it looks as if we are going to continue to see volatility pushing to the upside more than anything else. Look at pullbacks as a possible buying opportunity and what is a very strong market.
For a look at all of today’s economic events, check out our economic calendar.