S&P 500 Price Forecast – S&P 500 Continues to Look at Support

The S&P 500 has gone back and forth during the course of the trading session on Tuesday as we are above the 4050 handle waiting on the Federal Open Market Committee meeting minutes. At this point in time, it looks as if the market is going to continue to buy dips, as the 4000 handle is an area that a lot of people would take note of, as it is a large, round, psychologically significant figure, and therefore I think that area and the major gap would be worth noting as well. At this point time, I think that the market is going to see buyers on dips as it could give us an opportunity to pick up a little bit of value.

S&P 500 Video 08.04.21

Underneath there, the 3950 level offer support, and then of course the 50 day EMA. Because of this, I think what we are looking at is an opportunity to pick up a little bit of value if we get that pullback, but at the margins, I will say that this is a market that is likely to go looking towards 4200 given enough time, possibly even further than that. I have no interest in shorting this market, and I believe that the market will eventually find reasons to go higher. That being said, if we do break down below the 3800 level, I could be a buyer of puts but that is about as bearish as I get when it comes to this market. I expect a lot of volatility, but I also expect a lot of value hunters come back into this market anytime they get an opportunity to.

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