The S&P500 price is currently in a 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 Covid19 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.If you haven’t yet started trading forex and wish to do so, then you should take a look at this Trading Forex For Beginner’s Guide.Short Term Prediction For S&P500 Price: More Downside Expected As Economic Uncertainty RemainsThe 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 baited 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.If you wish to begin trading forex then have a look at these Top Forex Brokers.Long Term Prediction For US500: Still Bullish Although Growing Uncertainty RemainsAlthough the long-term prediction for the S&P500 price remains a bullish one, the current economic scenario remains a worrying one. There is still no indication when tapering will begin with Fed Chair Powell keeping the cards close to his chest.The situation in China may also be a drag on the S&P500 price prospects. The continued negative scenario with rising Covid19 cases across the US and an alarming rise in hospitalizations and deaths all over the states who have low jab rates is also an important factor.
S&P500 Price Prediction: On The Descent As Bears Enter The Fray
