S&P 500 Price Forecast – Stock Market Sleepwalks Through CPI

The S&P 500 has gone back and forth during the course of the trading session on Wednesday as we continue to see the market try to go higher, but really at this point in time it is a scenario where we are sluggishly moving through the summer. We also have to worry about the PPI numbers on Thursday, but quite frankly at this point in time there is no definitive move one way or the other, so I think this is going to be more of the same through the rest of the week as we simply try to grind a little bit higher.

S&P 500 Video 12.08.21

The downside, I see the 4400 level as being important, as it is a large, round, psychologically significant figure, and of course will attract a certain amount of attention. Breaking down below there then has the market focusing on the 50 day EMA and the uptrend line just underneath, which will more than likely be met with a “buy on the dips” type of mentality. Breaking down through that opens up the possibility of 4200 but I think that is the likeliest of moves. At this point, I suspect that it is probably more likely that we go looking towards 4500 in a slow grind more than anything else.

Keep in mind that the Federal Reserve is also back in the stock market, although they will fight you on that conversation. All things being equal, I believe this is a market that will struggle with any serious downside momentum, and there will be plenty of value hunters willing to get involved if we do see some type of selloff.

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