Yahoo Finance S&P 500 Price Forecast – Stock Markets Recover Nicely
The S&P 500 initially fell during the trading session on Wednesday but found buyers underneath as the supportive hammer from the previous session indicated that we may very well do. Now that we have started to break towards the top of that hammer, it does suggest that perhaps the market is ready to go looking towards higher levels, and perhaps finally reach the 4000 handle. Given enough time, I do think that we get there, and it is obvious that the S&P 500 is taking its cue off of Jerome Powell promising cheap money for the rest of time in front of Congress yesterday. Gov. Brainard also suggested during the day that the Federal Reserve is going to keep pumping cheap money into the market, so at this point it is the “one-two punch” of liquidity as she is seen as a very likely replacement for Jerome Powell down the road.
S&P 500 Video 25.02.21
The uptrend line has held, so has the 50 day EMA. The shape of the candlestick suggests that we have plenty of buyers underneath on dips, and therefore that is the only thing you can do, buy on the dips. The uptrend line being broken would be bearish in the short term, but there is an even stronger uptrend line just below that I think would also support the market. If the market were to break down below some of these barriers, I might buy puts in the SPY, but that is about as bearish as I would get in this market as it is far too bullish to step in front of that trend. The 4000 level above I think will be hit sooner rather than later.
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This article was originally posted on FX Empire
