S&P 500 Price Forecast – Stock Market Continues to Plow Higher

Christopher Lewis
·1 min read

The S&P 500 initially dipped during the trading session on Friday but found buyers underneath to turn things around and reach towards the 4100 level again. Quite frankly, this is a market that I think continues to see a lot of noise and upward pressure, but you need to be looking at the dips as potential buying opportunities as we have gotten a bit ahead of ourselves. Furthermore, we also have the earnings season kicking off next week, so I think that is something that people will be paying close attention to. With that being the case, I think that you can expect a lot of volatility.

S&P 500 Video 12.04.21

However, the market clearly has a lot of psychological support at the 4000 handle, not only due to the large, round, psychologically significant figure, but it is also where we have a gap that will come into play. With that being the case, I like the idea of buying dips and will continue to do so as they occur. The 50 day EMA sits just above the 3900 level, and therefore I think there is a certain amount of a potential “floor” sitting in that general vicinity. A breakdown below that level could possibly have this market falling a bit further, and I might be tempted to buy puts at that point. Notice how I did not say that I would be a seller though, because that has been financial suicide for 99% of the last 13 years.

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This article was originally posted on FX Empire

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