S&P 500 Forecast: Index Continues to Power Higher

Christopher Lewis

Dips will continue to be thought of as an opportunity, and I just do not see that changing anytime soon.

The S&P 500 rallied ever so slightly on Wednesday, as we continue to reach towards the all-time highs. If we can break out to fresh, new highs, then the market is likely to continue to reach towards the 4600 level. The 4600 level being taken out to the upside allows the market to go much higher. We are a bit overdone in the short term, so it is possible that we could see a little bit of a dip, but that will almost certainly be bought into.

The market is most clearly bullish, and we have broken well above an inverse head and shoulders, so I think there are a lot of reasons to think that this market, from a technical analysis standpoint, should continue to go higher. Growth is going to accelerate into Q4, and a lot of people are going to be looking to take advantage of the massive amount of acceleration the market should continue to see now that the lockdowns are fading away. Furthermore, the Delta variant seems to have been less drastic than thought, so it is likely that we go higher.

Beyond all of that, the United States is one of the better performing economies in the world, so it does stand to reason that the main benchmark should continue to be lifted. Regardless, you do not short indices in the United States, because the market is likely to see the Federal Reserve get involved in any forms of liquidity. Nonetheless, the market is likely to continue to see value hunters on these dips, so it does make sense that we have value playing its part as far as decisions are concerned, so dips will continue to be thought of as an opportunity, and I just do not see that changing anytime soon. Ultimately, this is a market that will find one reason or another to rally. We are in the midst of the earnings season, so that has a lot to do with what could push this market higher or lower in the short term. Longer term though, we continue to see the same attitude, so we continue to plow ever higher. Shorting is impossible, but if we break down below the 4250 handle, then it is possible that buying puts could be done.

S&P 500 Index

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

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