S&P 500 Price Forecast – Stock Markets Riding 50 Day EMA

The S&P 500 initially fell during the trading session on Friday but has found the 50 day EMA and a minor trendline both to offer a little bit of support. It should also be noted that we are sitting just above the 3800 level which of course has been important from a psychology standpoint. Looking at the stock market, we have had a rough couple of days but quite frankly I think this is probably going to be more the norm than anything else, at least as long as we have so much noise in the bond market. As the 10 year note reached towards the 1.6% level, it had a lot of algorithms scrambling to get into different types of stocks and sectors. In that scenario, you see a lot of disruption, but it does not necessarily mean the people are willing to jump in and start shorting the market.

S&P 500 Video 01.03.21

With all this being said, we still have the target of 4000 above that has yet to be challenged. This was based upon the consolidation underneath between the 3200 level on the bottom, and the 3600 level on the top. By extrapolating the move above the breakout point, you get a reading of 4000. Not only does that tie up quite neatly, but it is also a large figure that a lot of people will be looking towards. With that in mind, I believe that we will have plenty of buyers on dips given enough time, and you simply need to be patient in order to let value play into the psyche of traders around the world.

For a look at all of today’s economic events, check out our economic calendar.