Advertisement
Advertisement

S&P 500 Price Forecast – Futures Markets Quiet in Thin Holiday Trading

By:
Christopher Lewis
Published: Nov 25, 2021, 16:52 UTC

S&P 500 futures markets were open partially during the trading session on Thursday, despite the fact that it was Thanksgiving.

S&P 500 Price Forecast – Futures Markets Quiet in Thin Holiday Trading

In this article:

The S&P 500 has initially tried to rally during the session on Thursday but as you can see, we have given up those gains. That being said though, the market is likely to continue to go back and forth over the next couple of days as we are sitting right in the midst of the Thanksgiving holiday, which of course means that you have less liquidity, and of course shorter hours during the day. Nonetheless, futures markets are moving so I suppose certain people are out there trading it. Most of the time, during these holidays you are looking at algorithmic trading.

S&P 500 Video 26.11.21

To the downside, the 4600 level offers support, right along with the 50 day EMA. At this point, I think it is only a matter of time before the buyers get involved and pull this market higher due to the “Santa Claus rally”, which is when money managers try to make up their lack of returns in order to report padded gains to clients. At this point, it is quite often that December and to be one of the better years of the month, as they are chasing those returns.

I do believe that we eventually get to the 4800 level, but it may take some time to get there, perhaps an argument for some time in the middle of December. Between now and the end of the year, I believe this is a market that is a “buy on the dip” situation. I have no interest in shorting this market, but quite frankly I say that about the US indices at any given time. If we break down significantly, then I might be a buyer of puts but right now it does not look very likely.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement