S&P 500 Weekly Price Forecast – Stock Markets Have Tough Week to End September

The S&P 500 has fallen rather hard during the course of the week, to plunged below the hammer from the previous week. By doing so, we even broke down below the outer trendline, but have not completely wiped out the uptrend. Granted, it certainly looks as if the market is likely to see further downside pressure given enough time, but you should also keep in mind that Friday was the end of the third quarter, so there might have been a bit of bookkeeping and position squaring to support the market.

S&P 500 Video 04.10.21

If the market breaks down below the bottom the hammer from the previous week, that opens up a move down to the 4200 level, possibly even as low as 4100. At that juncture, I might be a buyer of puts but I would not be a short seller of the index, because quite frankly the Federal Reserve will do something. Because of this, it is just easier to buy puts and only worry about what you pay for them.

To the upside, if we break above the highs of the last couple of weeks, I anticipate that the S&P 500 will hit 4600 rather quickly. Keep in mind that you should also pay attention to interest rates, because if they continue to rise the way they have, that could put a bit of a kink into the market as well. I believe at this point in time we will see choppy and slightly downward pressure going forward, only to find buyers on these dips over the longer term.

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