S&P 500 Price Forecast – Market Pullback Again on Tuesday

S&P 500 Technical Analysis

The S&P 500 fell a bit during the Tuesday session as we try to correct an overstretched move. The 4500 level looks like it’s probably going to be a little difficult to overcome, and quite frankly you cannot go straight up in the air forever so this does make a certain amount of sense. With that being the case, the market will continue to see a lot of noise, but I think we can fall all the way back down to the 4300 level and still find buyers.

We are starting to get close to the so-called “blackout period” when companies cannot buy back their stocks due to pre-reporting time frames. In other words, there will be a certain amount of liquidity withdrawn from the markets as a result. I think ultimately, we do find buyers underneath because Wall Street always has a bullish narrative to follow. The market will continue to be extraordinarily noisy, and therefore I think you are starting to see people take a significant amount of caution ahead of all of this noise. It does make a certain amount of sense that we would see profit-taking in this environment.

On the other hand, if the market were to turn around and take out the highs again, then it will continue to see more of a “FOMO trade” going forward. I do think that the S&P 500 is overdone, and a correction is probably good because quite frankly you have to ask the question “Exactly who is left to start buying again?)

The 50-Day EMA is racing toward the markets but still remains below the 4300 level. Ultimately, this is a market that I think will continue to look at the 50-Day EMA as a potential dynamic support level. Quite frankly, the market is almost impossible to short at this point, due to the fact that there has been so much in the way of upward momentum, it’s just not worth the hassle to get short on the index itself, but there are plenty of individual names that are doing relatively poorly. Remember, the S&P 500 is being thrown around by a handful of stocks at this point.

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

thewealthiestinvestor.com is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of thewealthiestinvestor.com are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

The sender of this email makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of thewealthiestinvestor.com websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.

Disclaimer: Past performance is no guarantee of future performance. This product is for educational purposes only. Practical application of the products herein are at your own risk and thewealthiestinvestor.com, its partners, representatives and employees assume no responsibility or liability for any use or mis-use of the product. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Any trades shown are hypothetical example and do not represent actual trades. Actual results may differ. Nothing here in constitutes a recommendation respecting the particular security illustrated.