S&P 500 Price Forecast – Stock Market Quiet but Positive

The S&P 500 has rallied just a bit, as the market continues to see go looking towards the upside longer term, as the 4500 level is still my target. At this point in time, short-term pullbacks will continue to find plenty of buyers, as liquidity issues do not seem to be worrying the market, and quite frankly it quite frankly looks that if the Federal Reserve does have to increase liquidity, which will only keep the feedback loop going.

S&P 500 Video 16.08.21

Underneath, there is an uptrend line and the 50 day EMA coming into the picture as well, which probably sits somewhere near the 4400 level. All things being equal, I think that a pullback will only offer an opportunity to pick up a bit of value, as the market will then go looking towards the 4600 level. Ultimately, even if we break down below that level, I think it is only a matter of time before there would be buyers jumping into the market, so at the very most I would consider, I might be a buyer of puts in negative movement. Underneath, I believe that the 4000 level is a massive support level, as the 200 day EMA is starting to reach towards that psychologically and structurally important area.

Breaking down below there would of course be catastrophic, but at that point in time I am pretty sure that the Federal Reserve will step in and save everybody, after all the first job of the Federal Reserve is to protect Wall Street. A move down to the 4000 level would only be a 10% pullback, which of course is considered to be a typical “correction.” Anything beyond that gets dealt with.

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