Market Forecast for August 31, 2026

Forecast: Bullish The tape enters Monday with a constructive backdrop, as SPY’s elevated level reflects a market that has absorbed recent consolidation without breaking down. Late-August liquidity is thin, which tends to favor drift in the direction of the prevailing bid, and with no major macro headline on the calendar, momentum and index-level buying can carry the session. The close above prior resistance in the S&P 500 suggests dip-buyers remain active, and the positive correlation between equities and gold here hints at a risk-on bid that is not yet crowded. The main swing factor is any surprise headline—geopolitical or policy-related—that could hit the tape in thin conditions, amplifying moves. Also watch early futures positioning; if the open gaps up, the risk is profit-taking into the afternoon. Absent that, expect a modestly higher close with leadership in large-cap tech and financials.