S&P 500 Price Forecast – Stock Market Continues To Find Buyers On Dips

The S&P 500 has pulled back a bit against the trading session on Tuesday, reaching towards the 3300 level. That is a large, round, psychologically significant number, and it has in fact attracted value hunters into this market. I believe that the market also has plenty of support underneath, extending all the way down to at least the 3200 level where the 50 day EMA currently resides. I look at these pullbacks as a significant value proposition, and at this point it’s likely that the market will continue to find plenty of buyers every time it pulls back.

S&P 500 Video 22.01.20

I believe that it’s only a matter of time before we go looking towards the 3500 level, and that is my target for the longer term. Overall, there is the argument that we are a bit stretched, and if we get a sudden flush lower, you don’t need to be hero and step in right away. Take advantage of some type of supportive candlestick when it appears on a daily candlestick. All things being equal I do like this market and I do think that we go higher over the longer term, mainly because the Federal Reserve is more than likely to loosen monetary policy and more importantly add to their balance sheet in order to lift the stock markets in general. As long as that’s the case, there is no real way to short this market and we will more than likely find value hunters every time it dips. Earnings season so far has been fairly good as well, so that of course doesn’t hurt either.

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