S&P 500 Weekly Price Forecast – Stock Markets Hesitate at End of Month

The S&P 500 initially tried to rally during the course of the week, reaching towards the 4200 level before pulling back a bit. It is worth noting that Friday was the end of the month, and it is likely that the market is going to continue to see a lot of profit-taking. Nonetheless, the previous candlestick was a hammer, so this tells me that more than likely we are going to grind back and forth and try to work off some of the excess froth. Furthermore, we are in the midst of earnings season so that probably has a lot to do with this as well.

S&P 500 Video 03.05.21

When we look at the chart, we can clearly see that the 4000 level underneath should be supportive, as it is a large, round, psychologically significant figure, and of course an area where we had seen previous resistance. There is also a gap on the daily chart right above there, and the weekly chart of course has seen several green candlesticks in a row. We are in an uptrend, and you have no business trying to short this market at this point.

I do not care that the weekly candlestick is a shooting star, because when you see a preceded by a hammer or vice versa, it almost always means that the market is going to get really choppy. In other words, the negative candlestick is negated by a positive one, showing neutrality over the last couple of weeks. All things been equal, dips should be thought of as buying opportunities in a market that is clearly bullish from the longer-term standpoint.

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