S&P 500 Price Forecast – Stock Markets Continue to Wait on Jobs Number

The S&P 500 has pulled back just a bit during the course of the trading session on Wednesday as we continue to see a lot of noise. At this point, the market is simply waiting on the jobs number on Friday, as the ADP number disappointed. Nonetheless, this is a market that continues to find reasons to go higher, and therefore you cannot short it. The uptrend line comes into play as support, just as the 50 day EMA will. If we break down below the short term consolidation area, then it is possible that we could find a bit of supportive action.

S&P 500 Video 05.08.21

On the other hand, if we break above the highs of the last week, then it is likely that we will continue to reach towards the 4500 level. I suspect that by the time the end of the week comes, we will have some type of buying pressure. On the other hand, if we were to turn around a break down below the 50 day EMA then it is possible that the market goes looking towards the 4200 level, possibly even the 4000 level which is a large, round, psychologically significant figure and what I considered to be the “floor the market” as well.

There are a lot of options barriers and that general vicinity, so I think all things being equal that will be difficult to break down through. In general, I believe that we will continue to have buyers jump into this market and push the market much higher. After all, we have the “Powell put”, which keeps the market afloat.

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