S&P 500 Price Forecast – Stock Markets Continue to Wait for CPI Figures

The S&P 500 has been very quiet during the trading session on Wednesday as we continue to wait for CPI figures on Thursday. At this point, there are a lot of concerns about inflation, but more importantly we need to pay attention to the overall momentum which seems to be slowing a bit. Whether or not we have a move after the Thursday announcement will be very telling as to whether we are going higher anytime soon.

S&P 500 Video 10.06.21

If we could break above the recent all-time highs, then the market is likely to go looking towards the 4400 level, as the market does tend to move in 200 point increments. With that in mind, I do think that eventually we get that move to the upside that helps this market continue to climb longer-term. On the other hand, if we were to drift lower, I think that the 50 day EMA underneath could be massive support. After that, then we could be looking at the 4000 level which the gap right along with the idea of the psychology of the 4000 level being important. Underneath there, then the uptrend line comes into play with the 200 day EMA.

I would not be a seller of this market regardless, but I would perhaps look into the idea of buying puts at that point, simply because the Federal Reserve is very quickly going to jump into the markets and flood it with liquidity if there is some type of issue. While they do not suggest that asset prices have anything to do with what they do, but the reality has been much more different over the last 13 years.

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