S&P 500 Price Forecast – Stock Markets Get Hammered With Lower Yields

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The S&P 500 has fallen hard during the open on Monday, as we are reaching towards the 50 day EMA below. Ultimately, if we break down below the 50 day EMA and the uptrend line, it is very likely that we could go looking towards the 4200 level rather quickly, and then after that towards the 4000 handle where we have seen a small gap. At that point, I would anticipate that you would see the “floor the market”, where the absolute trend would be defined.

S&P 500 Video 20.07.21

If we were to break down below there, then I would be very bearish, buying puts for the short term. This is because the Federal Reserve will almost certainly step in and try to pick things back up. That being said, this is a market that certainly looks as if it is going to struggle in the short term, so I am not necessarily interested in buying at this juncture. I would wait to see whether or not we get some type of stability over the next couple of days before I put money back into the market. We are still very much in an uptrend, but at the end of the day we also look very threatened.

With the 10 year yields dropping well below 1.25%, it shows that there is a lot of fear out there, and it has driven the stock market much lower as well as driven the US dollar much higher. That is most certainly what you see when people are concerned, so I anticipate that we may see a little bit more negativity, at least in the short term.

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