S&P 500 Price Forecast – Stock Markets Messy to Kickoff Week

The S&P 500 has initially tried to rally during the course of the trading session but sold off a bit to show a lot of indecision. Now that traders are back from holiday, or at least getting there, we will start to see more volume and perhaps see a little bit more in the way of forceful moves. At this point, it looks like 4500 will be tested as support, but even if we were to break down below there at think there are plenty of areas that you can look at as a potential buying area, not the least of which would be the 50 day EMA and the uptrend line that is so prevalent in this market.

S&P 500 Video 08.09.21

To the upside, if we break above the top of the candlesticks from both Monday and Tuesday in the futures market, then it is likely that we go looking towards the 4600 level. The market does tend to move in 200 point increments, so 4600 makes quite a bit of sense anyway. With that, I think that buying on the dips continues to be the way going forward, because quite frankly that sold the market knows. After all, the Federal Reserve has proven more than once that it will jump in and save Wall Street if it starts to lose money, so it is hard to imagine a scenario where they would suddenly change their tune. With this being the case, I am simply looking for an opportunity to start buying again. Right now, I do not see it, so I am sitting on the sidelines.

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