S&P 500 Price Forecast – Stock Markets Continue to Drift

You will have no idea how strange this is for me to say, but the market is simply killing time at this point as we are in the dead of summer. That in and of itself is not a huge surprise, but at the same time we are within a whisper of all-time highs! It is very strange market at the moment, as it seems like there is no real determining factor at this point in time to have an impulsive move. Nonetheless, the one thing we need to look at is the fact that we are in a major uptrend, and that is the way it has been for multiple years.

S&P 500 Video 16.07.21

The 50 day EMA sits at the uptrend line, and at the 4236 level. That being said, the market is likely to continue to find plenty of buyers on dips and I think the Federal Reserve will do whatever it can to keep Wall Street profitable. Jerome Powell is sitting in front of Congress talking about being very dovish, so therefore it looks like the playbook is going to be the same, pick the market up every time it dips just as the Fed has done for the last 13 years.

If we break down below the uptrend line, then it is possible we may go looking towards the 4000 level which would be a nice 10% correction. This would be garden-variety, and it is likely that we would find plenty of value hunters in that area, especially as the 200 day EMA is sitting in the same general vicinity. If we break down below there, then I might possibly be a buyer of puts.

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