S&P 500 Price Forecast – Stock Markets Continue to Gain on Earnings
The S&P 500 has rallied again during the trading session on Wednesday as we continue to see a lot of noise in this market. That being said, it is very likely that we will go looking towards the highs based upon earnings season being so bullish, and of course the fact that we are in an uptrend to begin with. You can even make an argument for a bit of an inverted head and shoulders underneath being kicked off, so that in and of itself might be reason enough for technical traders to get involved.
S&P 500 Video 21.10.21
Looking at this chart, I think the 4600 level is probably the most likely of targets, at least in the short term. Underneath, you can see that the 50 day EMA is at the 4400 level and curling higher, so I think that probably acts as significant dynamic support. The S&P 500 is well funded by Wall Street, and it is the first place that a lot of index funds go to.
In other words, it has a bit of a bid to it naturally. Beyond that, even though interest rates are going higher in the bond market, they are still only near the 1.66% level, which is but a pittance when it comes to the gains that the S&P 500 typically gives. Furthermore, the reason interest rates are rising is because of projected growth, not necessarily a bad thing for the market either. I believe that the “floor in the downtrend” is probably near the 4250 handle and is nowhere near being threatened right now.
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This article was originally posted on FX Empire
