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

The S&P 500 has gone back and forth during the course of the trading session on Wednesday, sitting just above the 4400 level. Furthermore, we are just a touch away from the all-time highs, so we need to pay close attention to the fact that although we are negative for the session, there is still plenty of buying pressure underneath, especially as we have the uptrend line and the 50 day EMA in the same area. Ultimately, I think that will offer a bit of support going forward, as the market has followed the support levels several times.

S&P 500 Video 19.08.21

Furthermore, we are in an uptrend so there is no reason to start selling this market, so if we break down below the 50 day EMA it is likely that we could go down towards the 4200 level where I see even more support. After that, then we should go looking towards the 4000 level, which of course is a large, round, psychologically significant figure and roughly where the 200 day EMA is sitting.

The markets will probably continue to pay close attention to the risk appetite around the world, especially as the bond market shows that there seems to be a certain amount of fear entering the psyche of traders, and therefore I think you will have to pay close attention to the possibility of picking up value as it occurs. I have no interest in trying to short this market, but if we do break down below the 50 day EMA I might be convinced to start buying puts as the fears around the world continue to take front and center stage.

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