S&P 500 Price Forecast – Stock Markets Choppy to Kickoff Week

The S&P 500 has initially fallen during the trading session on Monday, only to turn right back around to show signs of stabilization. Ultimately, the market is likely to see a lot of noisy trading in this general vicinity but quite frankly I think at this point in time we are more likely than not to see sideways grinding towards the upside more than the down. In other words, more of the same action that we have seen for quite some time. By breaking to the upside, the market is likely to see more of the same type of noisy behavior that we had seen in the past, because quite frankly every time we dip there do seem to be buyers.

S&P 500 Video 10.08.21

Keep in mind this is a very quiet time of year, and of course we are waiting for the CPI figures later this week out of the United States. The uptrend line underneath comes into the picture to offer support as well, right along with the 50 day EMA. I do not think that we can break down below there but if we did then I would simply be a buyer of puts at best, because quite frankly it is difficult to imagine a scenario where I would jump right into the market and start selling. With this, I think that the market remains a “buy on the dips” type of scenario, just as it has most of the last 13 years. I think we are going to go looking towards the 4500 level, and then possibly even the 4600 level as the market does tend to favor 200 point increments.

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