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The S&P500 price seems to be on a slight downward streak again after many days of bullish gains. The lower-than-expected US GDP growth definitely had a slight drag on all indexes and the S&P was no exception. Results from large tech companies were a mixed bag with Amazon’s the most disappointing. All these factors definitely had a hand in the slump across the board with the S&P500 price closing at 4398.

On a long-term level, the S&P price is still considerably up since the low point of 4220 reached on July 21. The price of 4398 indicates a 5% rise over the ten-day period and investors do not seem to be overtly concerned by high inflation. The Fed’s indication that it would start tapering off the economic support related to Covid as the economy recovers also did not have that much effect.

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Short Term Forecast For S&P500 price: Return To Gains Or A Slowdown?

Although the S&P500 price had a slightly negative turn over the past few sessions, it appears to be bullish. Investors appear to have shrugged off the high inflation element although most large tech stocks remained flat even after registering large profits and turnover increases.

Logically the next step for the S&P500 price would be for it to once again re-negotiate the 4400 mark and make a charge towards the 4500 level. Some short-term resistance at this point could also be encountered.

It remains to be seen how the Covid19 situation will continue to pan out in states such as Florida where all time records of new cases are being registered. This quite alarming resurgence could have an effect on the economic re-opening.

However, after breaching the key resistance level at 4290, the S&P500 price ascending channel remains pretty much intact. The next resistance level may be found at the 4650 mark although that could be held back by a slight pullback that would retest the 20 and 50 day SMA averages as support lines.

A major event for the US economy this week is the announcement of non-farm payroll data for July which should definitely have an effect on the S&P500 price.

Long Term Forecast For SPX: More Muted Gains Expected But Bullish trend Remains

It is interesting to note that large tech companies like Intel, Apple, Netflix and Amazon all came out with profit warnings for the second half of the year.

The big guns claimed that although growth will remain, earnings may be slower as the economic recovery settles down. This would indicate more gains for the SPC but it could still mean that the bullish growth would not be that pronounced.

Another interesting point, although short term is that out of 11 S&P500 sectors ended in negative territory. With oil prices sinking lower and a BOE decision on interest rates ahead this week, the market promises some interesting times ahead.

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