S&P 500 Price Forecast – Stock Market Continues to Reach Towards All-time Highs

The S&P 500 has rallied significantly during the trading session on Tuesday to gain 2%. This of course is a very bullish sign, and it does suggest that the “Santa Claus rally” could be underway. If that is the case, then it is likely that we will reach all-time highs again. Ultimately, I think this is a market that will continue to be very noisy, but certainly have plenty of momentum chasers in it. That is essentially what December is built around when it comes to Wall Street, and I just do not see this changing this year. Obviously, the omicron noise had people concerned, but it seems as if the economic devastation from omicron was a bit overblown.

S&P 500 Video 08.12.21

I believe that we are still going to go looking towards the 5000 level, although I do not know that we get there by the end of the year. The 4800 level would be the next major target for traders, something that I think we could get you rather quickly. Obviously, there is a significant amount of resistance just above, but I think it is only a matter of time before we shoot through there. The 50 day EMA should offer support near the 4570 handle, and that of course we have massive support below at the 4500 level. Anything below there could trigger a massive selloff. That being said, the market is likely to continue to see a lot of buyers looking for value, so I believe it is only a matter of time before we continue the longer-term uptrend.

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