S&P500 Price Prediction: On The Descent As Bears Enter The Fray

The S&P500 price is currently in freefall and there’s no denying that panic has suddenly gripped the markets. It has dropped from a high of 4570 on 2 September to the 4430 mark today and further downside is expected as the markets continue to be hit by a cocktail of bad news. Inflationary pressures, a weak job market, and the rapidly rising COVID-19 cases combined with sluggish vaccination rates are definitely taking their toll on the SPX.

It does not look like the situation will be getting any better at least for the time being Other US markets are also feeling the pinch with the Nasdaq seeing even steeper drops while top European markets such as the UK FTSE have seen large declines. The situation in Asia is also threatening to turn into a nightmare with the Chinese property bubble threatening to pop at any moment.

Short Term Prediction For S&P500 Price: More Downside Expected As Economic Uncertainty Remains

The S&P500 price is expected to have a tough week as the economic uncertainty continues to bite. With the FOMC announcement on Wednesday and Fed Chair Powell’s press conference later, the markets will be waiting with bated breath on when economic tapering is expected to begin. It is likely that Powell will be cautious in his statements although investors will be keen to look at any scraps of information for guidance.

If a bullish scenario were to take hold especially with a positive FOMC decision, we could likely see the S&P500 make a beeline for the 4500 mark again. However, there needs to be a substantial shift in sentiment for this to occur.

If the bearish scenario were to continue then we could see a further break of the $4400 level which would signify that a massive sell-off is on the cards. Investors are also keeping a close watch on the Evergrande situation in China as that could precipitate a massive market crash across the globe.

Long Term Prediction For US500: Still Bullish Although Growing Uncertainty Remains

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