S&P 500 Price Forecast – Stock Market Continues Move Higher
The S&P 500 has initially gapped lower to kick off the trading session in the futures market on Wednesday, but then turned around to show signs of strength again. Ultimately, the S&P 500 should continue to see plenty of buyers, especially as we see more than enough reasons to believe that the liquidity measures should continue. The Federal Reserve is going to have a statement later in the day, which of course will have a major influence on where we go next but let us not be overly dramatic here: the Federal Reserve will not do anything to disrupt Wall Street.
S&P 500 Video 29.07.21
At this point, if we do get a significant pullback, it is likely that it will end up being a buying opportunity. The 50 day EMA and the uptrend line both offer support, and therefore I think that would be the first major support level. If we break down below there, then it is likely that the market could go looking towards the 4200 level. Breaking below that level then opens up the possibility of a move down to the 4000 handle where I see a small gap that could come into play and offer plenty of support. Furthermore, we also have the 200 day EMA coming into the picture, which allows for a longer-term trade.
If we were to break down below that level then it is possible that I would be a buyer of puts, but that is about it as the Federal Reserve will not let the market fall too far, and given enough time would do plenty of things to keep the market afloat.
For a look at all of today’s economic events, check out our economic calendar.