S&P 500 Price Forecast – Stock Market Continues to Find Buyers

US Stock Market Forecast Video for 20.11.23

S&P 500 Technical Analysis

The S&P 500 is a very bullish market, and therefore it’s likely that we will continue to see a lot of upward trajectory. Quite frankly, the market is one that will continue to try to chase performance, but we do have options expiration that could throw a little bit of volatility into the mix. On any significant pullback, it appears that traders are willing to come back into the market and start buying again, and now we are in the season where you would have to believe that the “Santa Claus rally” could be kicked out. Wall Street is a creature of habit, and of course they have the ability to spin a tale to sell stock in almost any condition.

The short-term pullbacks that could be coming should be buying opportunities and despite the fact that the market has been very bullish, I think we are getting a little extended and it is possible that we get some type of sharp drop. The candlestick from Tuesday was very impressive, due to the fact that people now believe that the Federal Reserve is going to stop raising rates, and therefore traders are going to continue to look at this through the prism of “Uncle Jerome is coming to save us all.”

If we break out to a fresh, new high, then it kicks off a major “buy-and-hold” FOMO trade, but I don’t know that we have the momentum to do that, at least yet. With this, I think you’ve got a situation where you have to be very cautious, but clearly cannot be a seller of this market as no matter what happens, it seems like the buyers are willing to step in and chase this rally. At this point, it’s worth noting that this has been a major short covering rally as well, now traders are trying to sort out what to do next. I think you should get used to this, as stock markets are going to become more volatile, not less. This is especially true considering that the market is now widely pushed around by just a handful of stocks as the S&P 500 is essentially driven by the same 7 or 8 stocks that everybody owns.

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