S&P 500 Price Forecast – Stock Markets Continue to Pressure Highs

The S&P 500 has drifted a little bit lower during the trading session on Monday as we have been reaching towards the highs again. That being said, the market looks like the buyers are still very much in control, despite the fact there might be a little bit of profit-taking in this region. The 4200 level underneath should be supportive, and therefore I think that any bounce from that area makes for yet another buying opportunity. Even if we were to break down below there, the 50 day EMA comes into the picture at the 4120 handle.

S&P 500 Video 08.06.21

Keep in mind that it is all about loose monetary policy, and although there are some concerns of inflation, the reality is that people continue to buy stocks on dips, and it is difficult to imagine a scenario where that suddenly changes after 13 years. Ultimately, I think what we are looking at is a scenario where you simply look for value that you can take advantage of.

If we did break down below the 50 day EMA, think there is even more support near the 4000 handle, where there is a massive gap and of course the large, round, psychologically important number comes in the play as well. Nonetheless, even if we do break down, I tend to look at this as an area we are simply looking for buying opportunities in a market that has shown no proclivities to drop for any significant amount of time. With that being the case, I look for supportive looking candlesticks or some type of impulsive candlestick to the upside to get involved.

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