S&P 500 Price Forecast – Stock Markets Pull Back in Rough Session

The S&P 500 pulled back during the trading session on Wednesday as we are now looking down the barrel of the 4500 level. This is an area that I think continues to be an area that will cause some headlines, mainly due to the fact that it is a large, round, psychologically important figure. Underneath, there is an uptrend line and the 50 day EMA coming into the picture 4440, so I think there are plenty of reasons to believe that eventually the value hunters come back into the picture.

S&P 500 Video 09.09.21

To the upside, I think that we eventually go looking towards the 4600 level, as is the market does tend to move in 200 point increments. At this juncture, I think that we continue to find plenty of reasons and narratives to drive this market higher, but perhaps we need a little bit of a short-term pullback. Regardless, you do not short US indices because they are so highly manipulated by the Federal Reserve and comments that they make in the general public. Furthermore, they also could go back into the bond markets to manipulate things as well.

If we break down below the 50 day EMA and the uptrend line, then I would be a buyer of puts, but that is about as aggressive as I get to the downside in this market. We are in an uptrend and channel, so therefore it all works out for a little bit of a pullback in order to get long yet again. With this, I am simply waiting for some type of bounce or support of action that I can take advantage of.

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