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S&P 500 Price Forecast – S&P 500 Continues to Pressure Resistance

By:
Christopher Lewis
Published: Dec 9, 2021, 16:59 UTC

The S&P 500 has pulled back ever so slightly during the trading session on Thursday, as we are being held like a “beach ball under water.”

S&P 500 Price Forecast – S&P 500 Continues to Pressure Resistance

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The S&P 500 has pulled back ever so slightly during the trading session on Thursday, as we continue to threaten the highs at the 4700 level. At this juncture, the market is more than likely going to continue to struggle, and a pullback certainly is possible at this point. Nonetheless, I think this continues to be a “buy on the dips” type of situation, especially if we get anywhere near the 50 day EMA. The 50 day EMA is at the 4580 handle, and it is starting to rise right along with the overall uptrend.

S&P 500 Video 10.12.21

Underneath there, we have the 4500 level which I think is going to be your short-term floor in the market, and any move below there would have to be taken seriously. Keep in mind that liquidity becomes a significant issue later in the month, so the further we get down the road here in December, the more likely we are to see a bit of trouble. Nonetheless, this is a market that is in an uptrend and there will be plenty of traders out there trying to capture gains in order to catch benchmarks.

Anybody who is below required benchmarks at this point in time of the year will come back into the markets in order to try to find gains wherever they can. With this being the case, I think we continue to look at the “Santa Claus rally” as we head into the holiday season. Furthermore, there are people out there that will try to take advantage of the low liquidity situation, and break barriers, just as the one we see at the moment.

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.

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