S&P 500 Price Forecast – Stock Markets Continue to Hang on Trendline
The S&P 500 has pulled back significantly during the trading session to wipe out most of the gains from the previous day. Because of this, we are testing the uptrend in general, especially as the 50 day EMA sits right along the same trendline. That being said, it looks as if we are consolidating to make some type of bigger move. If we break down below the 50 day EMA, then I might be a buyer of puts, but that is about as ugly as I get when it comes to this market.
S&P 500 Video 17.09.21
If we turn around a break above the highs of the last couple of sessions, then the market is likely to go looking towards the 4500 level. The 4500 level is an area that would attract a certain amount of attention, right along with the 4600 level after that. We are in an uptrend and channel, but we continue to see a lot of choppy volatility more than anything else. The S&P 500 has moved in the opposite direction of the US dollar during the trading session, so pay close attention to the US Dollar Index over the next couple of days.
The market has a lot of concern built into it right now, because we have not seen a significant pullback for a while, but I know better than to short the market as the Federal Reserve tends to jump in and interfere one way or another if Wall Street lose money. With that being the case, puts the only thing that you can do from the negative side due to money management.
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