S&P 500 Price Forecast – Stock Market Recovers From Previous Selloff
The S&P 500 has rallied a bit during the course of the trading session on Thursday, as we have the jobs number coming out on Friday. At this point, the market may finally be trying to find some type of bottom, as the market has been sold off so drastically as of late. The new omicron variant of coronavirus has a lot of people spooked, but at the end of the day it is just another wave of coronavirus. Ultimately, it does not appear to be worse than some of the others, and therefore it makes quite a bit of sense that we would see a recovery of the overreaction.
S&P 500 Video 03.12.21
As bad as this pullback has felt, the reality is we are only a few percent from the all-time highs. Volatility picked up quite drastically, but at the end of the day, we are still in an uptrend. We still have the “Santa Claus rally” potential out there, as the money managers around the world need to make up for missing their benchmark. With this being the case, it is only a matter of time before dips get bought into, despite the fact that it feels like the market fell apart.
The jobs number comes out on Friday, so if we start selling off rapidly, it is very likely that we would see stabilization later in the day only to see buyers come in and pick up value. Keep in mind that if markets in America fall too quickly, uncle Jerome from the Federal Reserve will come in and save the day.
For a look at all of today’s economic events, check out our economic calendar.