S&P 500 Weekly Price Forecast – Stock Markets Continue to Reach Ever Higher

The S&P 500 has rallied during the course of the week, and especially so on Friday as Jerome Powell has suggested that the Federal Reserve is going to stay the course and remain loose with its monetary policy, even if there is a little bit of aunt tapering later this year. This being the case, it makes quite a bit of sense that we would not only break above this 4500 level, but more likely than not going looking towards the 4600 level. The 4600 level is obviously a big figure, but as the market continues to move in 200 point increments, so therefore it is worth paying close attention to.

S&P 500 Video 30.08.21

To the downside, the 4400 level of course would offer a significant amount of support, right along with the uptrend line. If we were to break down below the 4400 level, then we could drop towards the 4200 level. This is a market that I do believe in going higher, and any pullback will probably offer quite a bit of value that we can take advantage of. At this point time, the market seems to be moving upon the idea of loose monetary policy going forward, and even if we do see a little bit of that bond tapering program come to fruition, the reality is that the Federal Reserve has put a bit of a “Powell put” into the market, and I think that as long as we have that, the likeliest of outcomes will be traders coming into pick up the market every time it gets even remotely “cheap.” And by a “cheap” I mean any time it drops.

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