S&P 500 Price Forecast – Stock Markets Continue to Look Upwards

The S&P 500 has rallied a bit during the trading session on Thursday as we are waiting for the jobs figure to come out on Friday. That being said, this is a market that has been simply killing time and that of course makes quite a bit of sense that the market would be quiet due to the fact that the month of August typically ends up being very quiet as a lot of the big money is simply away at vacation. Furthermore, there are lot of questions as to whether or not the reopening trade is going to continue or have, we seen the peak?

S&P 500 Video 06.08.21

Furthermore, we also have to pay close attention to inflation, because the general consensus is all over the place, even though most people believe that inflation is going to stick around, there are some fairly well-known names that believe in the deflationary story. Typically, the truth is somewhere in the middle and therefore I think that makes quite a bit of sense that we would see the inflationary questions continue to cause volatility.

To the downside, we have a nice uptrend line in the 50 day EMA indicator both offering support near the 4300 level, so if we were to break down below there then I think we could get a deeper correction, as low as 4000 where the 200 day EMA comes into the picture. On the other hand, it is much more likely that the market is a “buy on the dips” type of market going forward, and that we will go looking towards the 4500 level above. Obviously, 4500 will cause a certain amount of psychology, but at the end of the day it is just another number.

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