S&P 500 Price Forecast – Stock Markets Lackluster During Wednesday SessionThe US stock markets initially tried to rally during the course of the trading session on Wednesday but gave back the gains to show signs of weakness.
The S&P 500 initially tried to rally during the trading session on Wednesday but gave banking sector will made all-time highs. That being said, the 4400 level above was a significant level to get above, so it is not a huge surprise to see that we have pulled back from there. That being said, the market looks a little tired at this point so I would not be surprised at all to see a little bit of a pullback. The market underneath sees plenty of support at the 4200 level, backed up by a 50 day EMA indicator coming into the area, and of course the uptrend line.
S&P 500 Video 15.07.21
If we can break above the 4400 level, then it is likely that the S&P 500 will go looking towards the 4500 level, but it does tend to move in 200 point increments, so I think it is only a matter of time before we get to 4600 for that matter. The only reason I mention the 4500 level is that it would have a little bit of psychological influence.
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Even if we break down through the uptrend line and the 50 day EMA, I suspect that there is even more support near the 4000 handle as the 200 day EMA comes into the picture, and of course will cause a lot of headline noise. That is roughly 10% drop from here, so one would think that it would only be a matter of time before the Fed spoke up and tried to make this thing turned around on a move to that level. Breaking down below the 4000 level has me buying puts, but I certainly would not short this index.
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