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

The S&P 500 has been slightly negative during the trading session on Tuesday as we continue to see the 4400 level as important. The 4400 level has been an area that has been important more than once, and therefore think it is not a huge surprise to see that we may drift a little bit lower from there. Underneath, we have the uptrend line and the 50 day EMA coming into the picture, both of which should offer plenty of support in the short term.

S&P 500 Video 04.08.21

Keep in mind that the market is likely to continue seeing plenty of buyers based upon the cheap and easy money coming out of the Federal Reserve and of course the fact that the jobs number on Friday will be paid close attention to. Earnings season has been relatively strong, but that was more likely than not expected, so at this point in time it is probably going to continue to see plenty of reasons to get long of this market over the longer term. If we were to break down below the 50 day EMA and the uptrend line, then the market likely goes looking towards the 4200 level, and then possibly even as low as the 4000 level which of course is a large, round, psychologically significant figure.

Breaking down below there I would be a buyer of puts, but quite frankly I do not see that happening anytime soon, so I do believe that it is only a matter of time before the buyers coming back in and taking advantage of the overall attitude that the market has seen for so long.

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