S&P 500 Price Forecast – Stock Markets Hang On To Uptrend Line

Christopher Lewis
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The S&P 500 went back and forth during the course of the trading session on Wednesday as we continue to try to struggle to find some type of stability and certainty. We are sitting just above the uptrend line and the 50 day EMA, and both of those could come into play as support. After all, they are both common technical indicator the people pay close attention to and have been widely followed during this uptrend.

S&P 500 Video 04.03.21

Even if we do break down below the uptrend line and the 50 day EMA, I think the market probably goes looking towards the uptrend line underneath for support, as there is a second one just below. After that, then you would be looking at the 3600 level. On the other hand, if we turn around a break above the highs of the Tuesday session, that opens up the possibility of a move towards the 4000 handle. Keep in mind that the yields situation or perhaps more importantly the velocity of yields rallying could come into play. If yields in the US treasury markets continue to spite, that probably will work against the value of stocks in general. Nonetheless, I think that we eventually will have buyers on the dips, especially with the jobs number coming out on Friday.

Between now and then, we may have a little bit of choppiness, but that is relatively common, as the markets are trying to figure out what to do next. In general, we are in an uptrend so there is no point in trying to fight it, and of course the previous consolidation area between 3200 and 3600 measures for a move to 4000.

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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