S&P 500 Price Forecast – S&P 500 Pulled Back to Kickoff Week

The S&P 500 has pulled back just a bit during the trading session on Monday, as we have a major uptrend that is very much intact, despite the fact that we have pulled back. The market has a major uptrend line underneath, and of course the 50 day EMA comes into the picture to offer support as well. This of course assumes that we are able to even drop down towards that level. The 4400 level will be supportive as well, and as a result I think that it is only a matter of time before the buyers come back in and pick this market up.

S&P 500 Video 17.08.21

If we do break down below the 50 day EMA, then it is possible that we could go looking towards the 4200 level, and at that point in time I would be more than willing to buy short-term puts. Furthermore, even if we break down below there it is likely that the 4000 level will be very supportive and potentially a “floor in the market.” This would be a simple 10% correction, something that we see quite often so I think that is probably about as negative that the market could see. I call for it, but I do realize that it is a very real possibility.

I think we continue to see buyers on dips overall, and therefore try to push this market towards the 4500 level, and then eventually the 4600 level after that. Expect choppy and noisy behavior, but still a market that favors the overall uptrend as the Federal Reserve remains very loose with monetary policy.

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