S&P 500 Price Forecast – Stock Markets Continue to Power Higher as We Head Towards Jobs

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The S&P 500 has rallied a bit during the course of the trading session on Thursday as we continue to see plenty of bullish pressure. That being said, I think this remains a “buy on the dips” type of scenario, it certainly looks as if we are trying to do everything we can in order to break out and continue going much higher. The 4600 level is going to continue to be the target, as this market tends to move in 200 point increments. Furthermore, the uptrend line and the 50 day EMA underneath should continue to offer support as well. We are in an uptrend, and that is the most important thing that you need to keep an eye on, as people will continue to look for value.

S&P 500 Video 03.09.21

The Federal Reserve has suggested that although it is going to taper bond purchases later this year, the reality is that they are light years away from raising interest rates, and Jerome Powell gave the “all clear” to continue to stretch out on the risk spectrum. With that being the case, there is no way to short this market. Having said that, if we were to have some type of shock to break down below the 50 day EMA, then I would be a buyer of puts, because at least at that point in time you can mitigate some of your risk or at the very least limit it. More likely than not, we are at much more risk of “melting up” than any type of significant break down in the near term, and that is exactly how I will play this market.

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

This article was originally posted on FX Empire

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