S&P 500 Price Forecast – Stock Markets Recover Into The Weekend

The S&P 500 initially fell during the trading session on Friday but seems to be respecting the uptrend line. The uptrend line of course has been going for some time, and it does make a certain amount of sense that we would see a reaction here. Furthermore, the 50 day EMA offered support during the previous session, so I think it all ties together quite nicely, and a situation that continues to suggest that we are going to continue going higher over the longer term.

S&P 500 Video 23.08.21

To the upside, I see the 4500 level as the most likely of targets, especially as the market tends to pay close attention to these large figures. The S&P 500 also tends to move in 200 point increments, so pay close attention to that as well. The 4600 level of course is simply a placeholder for where we are going down the road, because at this point in time it is more likely than not going to be a scenario where we struggle to sell off for any significant amount of time.

On the other hand, if we were to turn around and break down below the hammer from Thursday, it would send this market much lower. At that point, the 4200 level would be the first target, followed by the 4000 level. Even if we fall all the way down to the 4000 level, it would simply be a 10% correction, something that is quite typical for markets in general. If we break down below the 50 day EMA, might be a buyer of puts but I will be selling this market flat out.

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