S&P 500 Price Forecast – Stock Market Continues to Press Highs

The S&P 500 has rallied just a bit during the course of the trading session on Wednesday as we continue to see traders buying the stock market. All things been equal, the market is going to see the buyers jump in and push this market higher, because quite frankly that is what they been doing for 13 years. Most of the time, stock indices do rally, so I think it makes sense that you are essentially only looking for buying opportunities. Furthermore, we also have the uptrend line and the 50 day EMA underneath that comes into the picture, so I do think that it is only a matter of time before dips get bought into.

S&P 500 Video 26.08.21

Having said that, we are getting ready to kick off the Jackson Hole Symposium, which is typically a time where the central banks around the world start to suggest what they are going to do for the rest year. All things been equal, this is a market that continues to hold its breath waiting to see whether tapering comes into the picture, but really at the end of the day Wall Street will find some type of narrative to go long based upon.

If we do break down below the 50 day EMA, then it is likely that we could go looking towards the 4200 level. The 200 day EMA is sitting just above the 4000 level, but I think the 4000 level will be a massive buying opportunity if we somehow melt down to that area. If we break down below the 50 day EMA, then I might be a buyer of puts, but I would not short this market. I continue to think we go looking towards the 4600 level.

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