S&P 500 Price Forecast – Stock Markets Make All-Time Highs Again
S&P 500 traders have continued to push to the upside as traders believe that the Jackson Hole meeting should give us a bit of clarity as to what the Federal Reserve is going to do. The markets are betting that the Federal Reserve will not taper, at least from what we have seen over the last couple of days. Algorithm traders have noticed the 50 day EMA as a support level, and of course we formed that beautiful hammer on Thursday. Ultimately, this is a market that is now near the 4500 level so it should find plenty of buyers on dips as well.
S&P 500 Video 24.08.21
The market does tend to move in 200 point increments, so I believe that the S&P 500 goes looking towards the 4600 level. To the downside, the 50 day EMA and the 4400 level both should offer support, especially as the uptrend line is sitting in that same general vicinity as well. Ultimately, I think that this is a market that you continue to buy on the dips, unless of course Jerome Powell does suggest that there is going to be some type of tapering, because the Wall Street traders out there do not like the idea of paying interest on loans. With that being the case, it comes down to whether or not the Fed can taper, and by the end of the week we should have some clarity.
In the short term, it looks as if the market is likely to “front run” the Jackson Hole symposium announcement, which of course is in the middle of the week. Because of this, we probably have a little bit more bullish pressure and then the announcement could be a “sell the event” type of situation. Nonetheless, we are still in the “buy on the dip” mode.
For a look at all of today’s economic events, check out our economic calendar.