S&P 500 Price Forecast – Stock Markets Attempting Recovery at Trendline

The S&P 500 has rallied ever so slightly during the trading session on Wednesday to validate the previous trendline. The trend line of course had been very supportive and important for quite some time, so it does make a certain amount of sense that we continue to see this area attract buying pressure. Nonetheless, the 50 day EMA above could offer a little bit of downward pressure, and obviously there are a lot of concerns out there when it comes to the markets overall. After all, the market will continue to pay close attention to the Chinese situation, and of course interest rates rising in the United States. Both of those are negative, but that being said, it is only a matter of time before the Federal Reserve saves everyone.

S&P 500 Video 30.09.21

If we were to turn around and break out above the shooting star from Monday, then the market is likely to go much higher over the longer term, perhaps reaching towards the highs overall. If we can break that, then the next target would be 4600 level. All things been equal, this is a market that if it breaks down below the lows of the previous week, then I would be a buyer of puts at this point in time, because I believe that the market is going to go looking towards the 4200 level, and of course the 200 day EMA. With that being the case, I believe that it is only a matter of time before the buyers would come back in though, so because of this I will not flat out short the market.

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