S&P 500 Price Forecast – S&P 500 Cracks 3600

The S&P 500 has rallied significantly during the trading session on Monday, breaking above the 3600 level to show signs of extreme strength. This was a knee-jerk reaction to the Pfizer news that they are coming out with a vaccine in the next few months that has a 90% success rate, or at least are in the very end of testing. This had everybody jumping into the market to buy everything they can get their hands on, as we started to see stocks that nobody has wanted for months suddenly pick up momentum such as airlines.

S&P 500 Video 10.11.20

That being said, the market is likely to see a lot of noise, but at this point in time I think that we need to keep in mind that the uptrend is still very much intact, and it is difficult to imagine a scenario where that suddenly changes, especially if we have some type of vaccine coming down the road. That being said, it is also a bit much to think that we are simply going to go straight up in the air. After all, if the vaccine could make passing stimulus a bit difficult, and we all know that Wall Street is all about stimulus and not much more. Earnings no longer matter, neither do P/E ratios.

These are things that antiquated traders pay attention to, but the reality is that the market is moving based upon monetary flow, and nothing else. We are at the top of the overall range, so a pullback makes quite a bit of sense, and I think that given enough time we will find buyers on some type of dip and I think that is what you need.

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