S&P 500 Price Forecast – Stock Markets Start Off the Week With a Bang

The S&P 500 fell rather hard during the course of trading on Monday, to dipped towards the 3800 level before turning around and exploding to the upside. This is the type of volatility that seems to be a bit of a mainstay of the markets these days, and it now looks as if the S&P 500 is going to make a push towards the 4000 level, although there is a lot of noise between here and there. I do believe that the 10 year yield will continue to be a major focus of traders on Wall Street, but at the end of the day I also believe that people are starting to become just a little bit more comfortable with the idea of the 1.6% return on the Treasury Notes.

S&P 500 Video 09.03.21

Pullbacks at this point should continue to be supportive, not only at the 50 day EMA, but also at the uptrend line underneath that seems to be in focus. Regardless, this is a market that I think will continue to attract a lot of attention, as we have clearly seen buying pressure jump into the market to kick off the week. Ultimately, I think that the S&P 500 will do everything it can to test the 4000 handle, but it is probably going to take some type of catalyst, or perhaps a drop in yields in that bond market, because that will give the “excuse” needed for traders to jump in and start buying stocks again. We have been in a “there is no other alternative” type of market for ages now, so I think if nothing else it would be simple habit.

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