S&P 500 Price Forecast – Stock Markets Quiet on Wednesday

The S&P 500 has been relatively quiet during the trading session on Wednesday, as we are getting very close to the all-time high yet again. This is a market that is stalling during the day but quite frankly we have seen so much bullish pressure that it suggests that it is all but impossible to start selling anytime soon. Because of this, the market will continue to see more of a “buy on the dip” attitude, as the uptrend line sits just below the 4200 level, and of course the 50 day EMA sits in that same general vicinity.

S&P 500 Video 24.06.21

Breaking down below the 50 day EMA could open up a move much lower, sending this market looking towards the 4000 handle where we should see a gap offer significant support. At that point in time, I would anticipate that the market would probably start to focus on the 200 day EMA, but I would not be a seller as we would more than likely see the Federal Reserve get involved one way or the other. However, I would probably be a buyer of puts at that point simply to take advantage of the downtrend, but also mitigate any excess risk in the marketplace.

All things being equal, I suspect that we will find plenty of support on pullbacks, so do not have any interest in trying to get too cute with this market, as I prefer to trade with the longer-term trend when it comes to US indices in general. Over the last 13 years, we have seen the Federal Reserve step in and interfere the market more than once, and I anticipate that will continue to be the playbook.

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