S&P 500 Price Forecast – S&P 500 Hits Psychological Barrier

The S&P 500 has rallied a bit during the trading session on Friday but gave back some of the gains as we got close to the 3500 level. This is an area that a lot of pundits on Wall Street had as a target, so it should not be a huge surprise that people took profits. Ultimately, this is a market that I think will continue to find buyers on value though, because the 3400 level underneath should be massively important. It was the all-time high that we had recently broken, and now I think we may pull back towards that area in order to find it as support yet again.

S&P 500 Video 31.08.20

I would get out of the way this market in the short term, and simply look for value underneath, especially if we get close to the 3400 level. I have no interest in shorting this market, so that might mean staying out of the market for a couple of days. Alternately, if we were to break above the top of the shooting star from the Friday session it would open up the possibility of a move towards 3600, which is now my longer-term target, but at this point in time as far as the market is concerned, we are a bit overextended so it is likely that you should get an opportunity to pick up the S&P 500 at a lower level. At this point, with the Federal Reserve getting out of the way it is likely that the market will continue to run amok.

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