S&P 500 Price Forecast – Stock Markets Cool Off at The Open on Tuesday

The S&P 500 has pulled back just a bit during the trading session to increase volatility, as the market is sitting just below all-time highs. While it has been a bit of a rough session, the reality of course is that the market hit an all-time high just the previous session, so you have to keep that in mind. Even if we were to break down from here, I think it is only a matter of time before you would see some type of support, namely at the 4400 level, and then of course the uptrend line and the 50 day EMA below there. That to me is the most important thing to pay attention to, that uptrend line and that EMA.

S&P 500 Video 18.08.21

To the upside, the 4500 level is a level that would attract a certain amount of attention, but quite frankly this market does tend to move in 200 point increments, so the 4600 level is my real target. It does not take much in the way of imagination to suggest that we are in a little bit of an ascending channel, so I think that is another thing to keep in the back of your mind as well. The market will more than likely find plenty of buyers on dips to find value, just as we have seen over the last 13 years.

Yes, there is a certain amount of chatter in the markets about the Federal Reserve tapering, but at this point I think it is a “known known”, meaning that people are not necessarily going to sell off drastically if it does in fact happen later this year.

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