S&P 500 Price Forecast – Stock Markets Unsettled Heading Into Jackson Hole

The S&P 500 has pulled back a bit during the course of the trading session on Thursday as we have reached a new all-time high during the previous session and now are waiting to see what central bankers and Jackson Hole have to say, as we will start to figure out whether or not there is going to be tapering coming out of the Federal Reserve, or if they continue to keep monetary policy extraordinarily loose. At this point, I think a little bit of a pullback could come into the picture, but I do think that there is plenty of support underneath to continue to keep this market afloat.

S&P 500 Video 27.08.21

Underneath, the uptrend line and the 50 day EMA both offer a lot of support, and I think at this point in time it is a bit of a “floor in the market”, and therefore I think as long as we stay above there then it is likely that we continue to go higher. On the other hand, if we were to turn around a break down below the 50 day EMA, then it is possible that I could be a buyer of puts, that way I can mitigate the total risk out there, instead of trying to short a market that will almost certainly be manipulated one way or another by central bank statements. On the other hand, if we were to break above the highs of the previous session, then we will clear the 4500 level, and perhaps open up the move to the 4600 level above there. The market does tend to move in 200 point increments, so it would make sense that it could happen.

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