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S&P 500 Price Forecast – S&P 500 Pulled Back From All-time Highs

By:
Christopher Lewis
Published: Dec 13, 2021, 17:30 UTC

The S&P 500 has pulled back from the all-time high region, as the market seems to need to digest some of the recent gains.

S&P 500 Price Forecast – S&P 500 Pulled Back From All-time Highs

In this article:

The S&P 500 has rallied a bit during the early part of the Asian session but sold off almost immediately when New York opened. At this point, the market is likely to continue seeing noisy behavior, mainly due to the fact that we are having liquidity issues, and of course it seems like there is a narrative for almost everything at the moment. This is some of the noisiest market trading that I have seen in the last 15 years, so it does make a certain amount of sense that we would see a bit of hesitation. Nonetheless, we are still in a very bullish market, so we may have put in a short-term “double top.”

S&P 500 Video 14.12.21

We turn around right away, that is fine, because it would just be typical consolidation more than anything else. Ultimately, the market will probably see this as a buying potential down to the 4666 handle, but if we were to break down below there then I think the 50 day EMA probably comes into the picture as a potential support level as well. 4500 underneath of course would be important as well, so all things being equal, I am simply looking for a buying opportunity after some type of nice dip. In general, this is a market that you cannot short, and I think it is only a matter of time before we break out to the upside, perhaps looking towards the 4800 level. The 4800 level course is a large, round, psychologically significant figure, and therefore could cause a little bit of noise. Anything above their opens up the possibility of a move to the 5000 handle.

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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