- S & P500 Price once again in the green after a torrid week
- Instability in Afghanistan is slowly subsidizing with investors returning to Fray
- Major events such as housing data and upcoming closely supervised central banker meetings in Jackson Hole
The price of the S & P500 is back in positive territory after a torrid last week, when the benchmark fell no more and no less than 100 points, or about 2.5%. With the stabilization of the situation in Afghanistan, investors are once again focusing on economic issues closer to home with several major announcements.
Currently, the price of the S & P500 is trading at the level of $ 4440, just 40 points from its all-time high of $ 4480 reached on August 16. It was followed by two heavy sales sessions with a considerable decline from the S & P500, but the last two sessions have been positive, at least so far.
There are a number of important events that can affect the index. The Jackson Hole meeting, which begins Aug. 26 (Thursday), is very crowded, while figures like the U.S. Flash PMI later today and new home sales on Tuesday should also be interesting. U.S. GDP on Thursday, August 26 is also an important statistic. Fed Chairman Powell’s Friday speech in Jackson Hole is an important indicator for future economic policy and how markets will react to it.
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Short-term forecast for S & P500 Price: return to rise as the economy continues to reopen
The price of the S&P500 is expected to continue to rise as the economy reopens, although descriptions such as the Afghanistan issue could produce some minor setbacks. The next S & P500 price target should reach the 4700 level, where considerable resistance is expected.
If a bullish thesis prevails, the S & P500 will surpass the 4500 level and if this week’s economic data is positive, the price should rise further. As the situation in Afghanistan diminishes, investors should regain confidence.
A bearish thesis will occur if economic data show lukewarmness or if the international situation in Afghanistan continues to worsen. The Covid19 issue is still fluid, although President Biden’s recent confirmation of a booster shot for all adults gave a boost to the markets. If the bears take control, the price would have to retreat to the 4300 level, where it would likely recover.
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Long-term forecast for SPX: still bullish and 5000 possible at the end of the year
Several intrinsic factors continue to affect the S & P500 index. This includes; the Covid situation19, a lukewarm economic recovery and the beginning of reduced Fed financial support. However, the long-term forecast of the S & P500 price is quite bullish.
Fed Chairman Powell’s speech Friday should provide more guidance. The plan to back down economic measures to support companies affected by the Covid19 situation will definitely be closely monitored.
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