S&P 500 Price Forecast – S&P 500 Hit All-time High
The S&P 500 rallied during the trading session on Monday to break to an all-time high yet again. At this point in time, it looks like we are ready to go much higher, and therefore I think any time we pull back you have to be looking at it through the prism of buying value. It looks like the Santa Claus rally is starting, due to the fact that we are between the holidays and people are starting to chase returns. The 50 day EMA sits at the 4611 level, and is rising higher. That for me is the “floor the market”, so as long as we can stay above there it is very likely that we will continue to find plenty of buyers willing to jump in and pick up value.
S&P 500 Video 28.12.21
If we do break down below there, then the 4500 level has to be paid close attention to, because it is a large, round, psychologically significant figure, and an area where we have bounced from a couple of times in the past. It is not until we break down below there that I would be concerned about the trend and quite frankly I just do not see that happening anytime this week. With this, I think that every time we pull back there will be people out there trying to chase returns, so this is going to be a bit of a self-fulfilling prophecy like we get at the end of every year. On the other hand, once we get into January volume is going to start picking up, and I think we could really start to take off at that point.
For a look at all of today’s economic events, check out our economic calendar.