S&P 500 Price Forecast – Stock Markets Pull Back

The S&P 500 pulled back a bit during the course of the trading session on Tuesday, as we are taking a little bit of a breather from the 4400 level. Nonetheless, it is only a matter of time before the stock market rally again, especially with the Federal Reserve speaking via statement at the end of the day on Wednesday. All things been equal, this is a market that remains a “buy on the dips” type of scenario. If we can break above the 4400 level, then it is likely that the market should continue to go looking towards the 4500 level.

S&P 500 Video 28.07.21

Underneath, the 50 day EMA is sitting right on top of the uptrend line, both of which could keep the trend to the upside. At this point in time, if we break down below the 50 day EMA and the uptrend line, it is likely that we go looking towards the 4200 level, possibly even as low as the 4000 level.

That would be a 10% pullback, which is typical for the market. All things being equal, I think that there is no way to short this market, but if we broke down below the 4000 handle, it is likely that I might be a buyer of puts, because at least that way are not exposed to the face ripping that the Federal Reserve will most certainly give you if this market breaks down. At this point, I am still looking for opportunities to get long of this market as it has been in such a massive uptrend for quite some time. Given enough time, we will continue much higher.

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