S&P 500 Price Forecast – The Stock Market Continues to Limp Along

The S&P 500 has initially tried to rally during the course of the trading session on Friday to resource 50 day EMA before pulling back and forming a bit of a negative candlestick. That being said, the market is likely to see the uptrend line underneath showing support, so with that being the case, the market is likely to see a lot of back and forth in this area based upon the interest rate situation in the United States continue to see bond selloff. With those higher rates, that has people freaking out in the stock market, that is exactly what we are seeing here.

S&P 500 Video 08.03.21

The uptrend line that we are testing is one that is more sustainable than the one we broke through on Thursday, so I think we are more than likely going to see a bit of buying pressure. Underneath there, then the market is likely to go looking towards the 3600 level. The 3600 level of course is a large, round, psychologically significant figure that can also offer support in and of itself. The 200 day EMA is sitting above the 3500 level that should go looking towards the 3600 level, so with all this being said I do think that it is only a matter of time before we have value hunters coming back into the marketplace. If we do break down below the 3600 level, then I like buying puts. I will not short this market, it is a good way to lose money in a scenario where the Federal Reserve can step in at any moment and cause havoc.

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