S&P 500 Price Forecast – Stock Markets Continue to Rally During Earnings

The S&P 500 has rallied a bit during the course of the trading session on Friday to reach towards the 4450 level, perhaps reaching towards the 4500 level after that. At this point in time, I think that given enough time we will break above there and send this market much higher. Pullbacks at this point should continue to see plenty of buyers based upon value, and of course with the 50 day EMA sitting just below the 4400 level, then it offers support. Beyond that, we have broken through a major downtrend line, shows signs of strength as well. In fact, you could even make a big argument for an inverted head and shoulders as well.

S&P 500 Video 18.10.21

All things been equal, earnings season has been good so far, and that will continue to drive this market. After all, the banks are going much better than anticipated, and that is generally a harbinger as to what we are going to see for the rest of the earnings season as well. All things being equal, this is a market that is ready to recapture some of its losses, and despite the fact that we last couple of weeks have felt quite painful, the reality is that the market has only pull back a few percent from the all-time highs, so it is not a huge surprise to see that the buyers came back.

As long as that continues to be the case, meaning that we are close to the all-time highs, and with the added pressure of the US dollar falling, this is a market that I simply see no interest whatsoever in trying to short. In fact, it is not until we break down below the 4250 level that I would be remotely concerned.

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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