S&P 500 Price Forecast – Stock Markets Pull Back as Yields Rise Again
The S&P 500 has pulled back a bit during the trading session as the 10 year note started to see interest rates rise yet again. Ultimately, this is a market that I think is still in a very bullish attitude, and I think that trying to short this market is a great way to lose money. When you see that on Tuesday, we formed a massive hammer that bounced from the 50 day EMA and the uptrend line, it suggests that we are in fact trying to form a new basing pattern that could send this market higher.
S&P 500 Video 26.02.21
When you look at the longer-term attitude of the market, it would not surprise me at all that 4000 is a target. Furthermore, you can even make an argument for that due to the previous consolidation between 3600 below that extended all the way down to the 3200 level. That is a 400 point range and extending that from the 3600 level gets you to that 4000 level. Furthermore, 4000 is a large, round, psychologically significant figure and therefore becomes a bit of a target. It is obvious that the Federal Reserve is going to stand on the sidelines to keep money is loose is possible between now and essentially what seems to be the end of time, and therefore Wall Street will continue to throw money into this bubble. Yes, it is a bubble but at the end of the day you cannot fight this type of market, it simply ends in tears and will cause losses. Buying the dips continues to work.
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This article was originally posted on FX Empire
