S&P 500 Weekly Price Forecast – S&P 500 Has Wild Week
The S&P 500 has initially tried to rally during the week but only to see it give up all of the gains and start falling. In fact, at one point we even managed to break down below the 3800 level as the 10 year yield reached as high as 1.66% during overnight trading. The S&P 500 has been fueled for the last 13 years on cheap money, so at the first hint of somebody actually paying back a loan, traders start to freak out. At this point in time, there seems to be a lot of rebalancing of portfolios, and that of course has caused a lot of volatility in general as well.
S&P 500 Video 01.03.21
You can see that I have drawn a trendline that included this week, mainly because it was from the daily chart where we had seen a couple of supportive looking candles on Wednesday and Thursday. However, there is also a trend line underneath there that is a little bit more established, so I think somewhere between these two lines we will have buyers jump back into the market and take advantage of value.
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I still believe that the market is going to make an attempt to get to the 4000 level, is simply too big of a target to ignore. Furthermore, there had been previous consolidation that measured for a move to that level, and we have not yet hit it. Remember, when you extrapolate moves out from rectangles and the like, it suggests that you get to that price eventually, not how quickly you do it. A bit of patience will probably be needed.
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