S&P 500 Price Forecast – Stock Markets Continue Same Consolidation
The S&P 500 has rallied a bit during the course of the trading session on Tuesday as we continue to see a lot of volatility in the market. Quite frankly, you need to keep one eye on the 10 year yield, and another on the latest noise coming out of China. Chinese markets have been somewhat insulated due to the fact that there is a bank holiday going on, but at the same time there are a lot of concerns when it comes to the Evergrande implosion, and the fact that there are more signs of contagion.
S&P 500 Video 06.10.21
The market breaking down below the lows of the last couple of days certainly would open up a move down to 4200, and it should be noted that the 200 day EMA is hanging about in the 4130 level and looking to get higher. That being the case, I think that will be your short-term “floor the market” if we get any type of support. I would be a buyer in that general vicinity as it could open up a bigger move. The S&P 500 of course has been moving based upon liquidity over the last 13 years and I just do not see that changing anytime soon.
To the upside, if we break above the 50 day EMA, then the market should go looking towards the 4500 level. The level of course is an area that would attract a lot of attention, and clearing that level then it allows the market to go looking towards the 4550 level.
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