S&P 500 Price Forecast – Stock Market Continue Santa Claus Rally

The S&P 500 has rallied again on Friday to close out the trading week. We are at all-time highs, currently enjoying the so-called “Santa Claus rally” which is the proclivity of the market to rise in price as we head towards Christmas. This is what happens when money managers are trying to chase performance. They need to come up with good numbers for the clients at the end of the year, and this is the last gasp of that opportunity. Beyond that, some are under invested and their clients will want to know why they are. If they buy stocks now, they at least are in the marketplace.

S&P 500 Video 23.12.19

The ascending triangle underneath measured for a move to at least 3200 and depending on the way you place the top of the triangle; you could even say as high as 3230. Several of my contemporaries have been calling for 3250, so I do think that is a possibility as well as it tends to be a bit of a self-fulfilling prophecy. Ultimately though, this is a bit of an artificial market but as you have seen over the last 10 to 12 years, artificial markets are more the norm than the exception these days. I still like buying pullbacks a bit lower, as it gives us a bit of a chance to pick up a little bit of value. The 50 day EMA underneath is massive support and is currently sitting at the 3100 level. That is an area that is crucial for the market to stay above in the short term to keep the uptrend alive. That being said, it doesn’t look like we are going to be anywhere near their anytime soon.

Please let us know what you think in the comments below