S&P 500 Price Forecast – Stock Markets Continue to Rally

The S&P 500 has rallied a bit to kick off the trading week, but then pulled back to show signs of hesitation. At this point, the market is obviously very bullish, but it may be running out of momentum. As you can see, I have drawn a line on the chart at the previous all-time high. This is roughly 4550, and that is where I think there is a lot of support waiting to get involved in what has been a very strong run higher. Nonetheless, markets cannot go straight up in the air forever, so little bit of a pullback would not only be expected, but it would probably be welcomed.

S&P 500 Video 02.11.21

If we were to break down below the 4550 handle, then I would believe 4500 would be the next target for buyers to look at. Underneath there, the 4451 level is where we currently see the 50 day EMA and the fact that it is sloping higher also suggests that there are plenty of buyers underneath willing to get involved. I have no interest in shorting this market, at least not until we break down below the 4250 handle, something that seems almost impossible at this point.

Quite frankly, this point I think you would be looking at some type of catastrophic situation, so I doubt very likely that we are going to see that happen. With this, I think that short-term pullbacks continue to offer plenty of buying opportunities, and that is how you have to look at the market. We are in the midst of earnings season, and so far, it has been relatively good.

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