S&P 500 Price Forecast – Stock Market Slams Into Resistance Again

The S&P 500 rallied right off the bat on Monday, as we slammed into the 3600 level again. This is an area that has been very resistive as of late, so it is not a huge surprise to see that we have pulled back from there midday. All things being equal, the S&P 500 should continue to go higher over the longer term, but we might be a little overdone at this point.

S&P 500 Video 24.11.20

Beyond all of that, it is also worth noting that we are in a holiday shortened week, and therefore it makes quite a bit of sense that we may see lackluster performance as many traders will simply be on the sidelines in general. At this juncture, I think that pullbacks continue to offer buying opportunities as we are very much in an uptrend and that should continue to be the case going forward. After all, there is plenty of cheap money out there that people will be taking advantage of, and any time this market sells off for any length of time, the Federal Reserve will step in to protect everyone. This is the one thing the market can count on, government and central bank interference if things go bad. Unfortunately, that kills price discovery, but it is what it is.

If we can break above the 3620 handle, then we will go looking towards the highs again, but I think that is probably asking for a lot right now. With that in mind, I believe that it is only a matter of time before dips get bought and that is simply how you have to look at this market, as one that should be bought on the occasional dips that show signs of support. Pay attention to the US dollar, it does tend to have an inverse correlation.

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