S&P 500 Weekly Price Forecast – Stock Markets Close at All-Time Highs for the Week
The S&P 500 has rallied yet again during the course of the week, as we see plenty of momentum in this market. That being said, we might be a little bit stretched so a short-term pullback makes a certain amount of sense. Regardless, the 4500 level should be a major support level based upon the psychology of the region and of course the fact that recently had been resistance. Because of this, I think that any pullback will probably be bought into, especially as the jobs number in the United States was so strong.
S&P 500 Video 08.11.21
If we were to break below the 4500 level, then it is possible that we could see the 4250 level tested, which I look at as the absolute “floor in the market” and of the uptrend. As long as we can stay above there, then I believe there is a reasonable expectation that the market continues to go higher.
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At this point, even though the Federal Reserve is looking to taper, it is doing so very slowly, so I do think that it is more likely than not that the stock market will look through this, as not only is the Federal Reserve still going to expand its balance sheet, but it looks like there is real demand from the economy as well. In other words, it is not just liquidity for once, it might actually be that the economy has reopened and is doing reasonably well. With that being the case, I would not necessarily anticipate a shot straight up in the air, but I would anticipate that we should see overall resilience going forward.
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