S&P 500 Price Forecast – Stock Market Start Out Short Week on Back FootThe S&P 500 fell rather hard on Monday, as concerns about a new strain of coronavirus in the United Kingdom has sent a chill through the financial system.
The S&P 500 has fallen rather hard during the trading session on Monday to kick off the week as traders are focusing on the massive damage that had been done in the Asian and European sessions, due to the United Kingdom having to close its borders due to a new strand of coronavirus. That being said, the markets were very thin, which will exacerbate some of the move is. Ultimately, I think that the 3600 level does offer a certain amount of support, just as the 50 day EMA underneath rising should offer support.
S&P 500 Video 22.12.20
That being said, this is the wrong time of year to throw a lot of money in the market, but if you are long of the stock market already, then it is very likely this will end up being nothing but a “blip on the radar.” It is possible that we get a little bit more negativity heading for the holidays, but that will probably have a lot to do with the idea of thin trading conditions just as much as it will anything else.
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The US dollar strengthening during the day did not help the situation either, but it does seem like we are at least trying to stabilize a bit. For what it is worth, US Treasury Secretary Stephen Mnuchin was on CNBC early in the day, which is a way to signal to Wall Street that people are going to be protected by the government. I know that seems a bit strange, but it is something that we see multiple times over the last couple of years.
For a look at all of today’s economic events, check out our economic calendar.