S&P 500 Price Forecast – Stock Markets Test Bottom of the Previous Trendline

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The S&P 500 has rallied significantly during the course of the trading session on Thursday, to test the previous uptrend line that had been so important. The 50 day EMA is slicing through the candlestick as well, so that certainly will come into play as well. There are a lot of concerns when it comes to Evergrande and China, and it has caused a bit of volatility. However, if we can break above the 4500 level, then I think the market goes much higher. That would make the move that we just made a bit of a “false breakout.”

S&P 500 Video 24.09.21

If we break down below the bottom of the candlestick from the Monday candlestick, then the market likely goes looking towards the 4200 level, which is where the 200 day EMA is starting to reach towards. That would obviously be a very negative turn of events and could have me buying puts at this point in time. That being said, that is the only thing that I can do in this market as far as negativity is concerned as the Federal Reserve will do what it can to keep it afloat. With this being the case, the market is likely to see a lot of volatility, but if we clear that latest selloff, which would be an extraordinarily bullish sign.

The market has been very bullish for quite some time, so it does make a certain amount of sense that we have a little bit of hesitation overall, which of course is healthy for a market to see occasionally, as it should not go in one direction forever.

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