The fundamentals driving market sentiment continue to revolve around the pandemic, inflation, consumer spending/confidence, and the Federal Reserve.

If you boil it down a little further, coronavirus is largely still directing the whole show as the continued fallout is believed to be driving inflation which in turn has broad implications for the Fed’s policy direction. S&P500 is possibly in wave 3 top in place also for the NASDAQ 100. That said, its not confirmed and the Indices can continue higher, we are focused on both sides of the market incase SP500 failed to provide us with a breakout above its highest high i.e 4476.
S&P 500 Elliott Wave: Exploring the bullish and bearish patterns as Intermediate Wave 4 starting or the market pushing higher into Wave 3

The following week on September 3 brings the August Employment Report, which Wall Street insiders widely expect will show another month of +800,000 or more jobs added, a level that would put even more pressure on the Fed to further rein in its supports.


BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

An increasing number of insiders believe that the resurgence in coronavirus outbreaks is holding back the global economic recovery to some degree. However, bulls view this as a short-term threat. Meaning that some of the anticipated post-pandemic demand may be delayed temporarily but isn’t seen having a significant impact on the longer-term growth outlook. One of the most highly anticipated is the Federal Reserve’s annual Jackson Hole Economic Policy Symposium next week on August 26-28 (Thur, Fri, Sat), where Jerome Powell is widely expected to announce plans to start reducing the central bank’s monthly asset purchases.

According to the technical side, SP500 went for a bullish continuation of trend from our lower trend line i.e 4387 and exponential moving average 50 in daily time frame. The immediate resistance at 4476 will be our deciding point which if broken will provide the next stop for SP500 at 5000 level and above, while an impulsive dovish closing below the aforementioned level will create sentiments of bearish correction of higher degree before making any highest highs. 

SP500

Aug 23 2021