S&P 500 Price Forecast – S&P 500 Approaching All-Time Highs Again

The S&P 500 has rallied on Thursday to threaten the all-time highs again. The market certainly looks as if it is trying to build up enough momentum to break out, and at this point in time one would have to assume that any selloff will be thought of as a potential buying opportunity, as we are in such a strong uptrend. Yes, the last couple of weeks have been rather choppy, but this is simple consolidation. It certainly looks as if we are going to take out that all-time high and then go looking towards the 4800 level.

S&P 500 Video 24.12.21

To the downside, I would anticipate that the 4600 level, which is where the 50 day EMA currently resides, should be supportive and I would be interested in buying on a dip to that level assuming we even get it. I have no interest in shorting this market, but if we broke down below the 4500 level could be convinced to buy puts but that is about it. US indices are not designed to fall, otherwise they would be equal weighted. As long as you know that you understand that it is just a handful of stocks that move everything when it comes to the index and therefore you have to trade it as such.

Liquidity is going to become an issue, but even if we do not get the breakout between now and New Year’s Day, I suspect that early January will see stock markets heading all-time highs rather easily. More likely than not, value hunters will continue to pick up stocks every time they drop over the next couple of weeks.

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