S&P 500 Price Forecast – Stock Markets Continue to Find Buyers on Dips

The S&P 500 has gone back and forth during the course of the trading session on Thursday, as we continue to see a lot of confusion. The 4500 level is an area that we have been paying attention to for a while, and the fact that is at a large, round, psychologically significant figure, it makes quite a bit of sense that there would be interest there. A breakdown below the 4500 level then opens up a possibility down to the uptrend line and the 50 day EMA that we have been following for a while. As long as we stay above there, it is difficult to imagine a scenario where we fall significantly. In this scenario, this is a “buy on the dips” type of situation.

S&P 500 Video 10.09.21

If we break above the top of the candlestick, that would obviously be bullish for the stock market, but ultimately that is what happens due to the fact that the traders on Wall Street will find a reason to go bullish one way or the other. We have not had a decent pullback for what seems like ages now, but if you are trying to short the market based upon that, you probably are going to find nothing but trouble.

All that being said, if we break down below the uptrend line and the 50 day EMA, I might buy puts but that is about as bearish as I get with US indices due to the fact that the Federal Reserve will step in and either say or do something to protect everyone.

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