S&P 500 Price Forecast – S&P 500 celebrates Canadian DealThe S&P 500 rallied rather significantly as it was announced late Sunday night that the Canadians and Americans came to an agreement, and that the new deal between the United States, Canada, and Mexico was all but done.
The S&P 500 has rallied significantly during the trading session on Monday in response to the Canadians and Americans agreeing to terms on the new trader to deal between the US, Canada, and Mexico. Ultimately, this is a good sign for the economy as there was a major overhang of market sentiment and potential trouble in the auto industry of this wasn’t done. Ultimately, it was a bit foolish to think that the Americans and Canadians couldn’t come together on some type of agreement, but markets are emotional place, and quite frankly very rarely use logic.
Ultimately, this is a market that I think is a “buy on the dips” scenario, but we do have a certain amount of resistance above at the 2950 handle in the futures market. Once we break above there, the market will then start to look at the possibility of 3000, which has been my target for some time. That doesn’t mean that it’s going to be easy, and that doesn’t mean that it’s going to happen in the short term. I believe that by the end of the year we will be looking at 3000 being printed though, and I also believe that the 2900 level is now the “floor” of the market in general. With that in mind, I’m a buyer of dips, and certainly have no interest in shorting this market anytime soon. If we did break down below the 2900 level, at that point I might be convinced to start selling.