Annual Forecast for S&P 500 (2021): Further Rise Imminent in 2021 After Yearly Gains

S&P 500 Price Analysis – December 27

The S&P 500 may increase by about 15% to 20% in 2021, after gaining nearly 15% in 2020. The index had hit a low of 2179.2 during March market carnage and has rebounded to print yearly highs of 3735.6 level. The recovery from lows has been swifter and more robust than most participants had anticipated.

Key Levels
Resistance Levels: 4016, 3970, 3840
Support Levels: 3588, 3398, 3210
S&P 500 Monthly Chart: Bullish
S&P 500 is back to all-time highs at 3735.6, which we see in trading bullish of a higher beyond the monthly moving average 5. The S&P 500 may be in process of putting in the highs for the 2021 year towards 4000.00.

This monthly chart shows several years of S&P consistent upside traction from its 2010 lows around 666.3 level. S&P 500 suggests the rally from the October low of 3210 levels is unfolding as a bullish structure. It is currently in progress and the continuation pattern is unfolding as another impulse in lesser intensity.
S&P 500 Weekly Chart: Bullish
As seen on the weekly chart up from lows at 2179.3, it ended at 3588.8, and before another wave and the dips ended at 3210.0. The index then resumed higher to 3735.6 and is expected to end soon.
We’ll be expecting the index to then pullback before turning higher for the 2021 bull run to 4000.

Afterward, expect a bigger pullback to correct the cycle from November low before the rally resumes. The potential target higher is a minimum of 100% – 123.6% from October lows which comes at 3210 – 4016 levels.

Conclusion
The S&P 500 market consolidates following its successful defense of the 3210 low from earlier October. Although the broader trend stays seen higher, with momentum not confirming the new highs in addition to further signs of exhaustion, the bias remains to look for further consolidation, before this core bull trend eventually resuming in 2021.

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