S&P 500 Price Forecast – Stock Markets Bounce Again

The S&P 500 has initially dipped during the trading session on Wednesday but has also found buyers underneath. By doing so, the market looks as if it is ready to try to continue higher, thereby opening up the possibility of a break above the 3700 level. By doing so, it could then have the market looking towards the 3800 level after that. Underneath, I see the 3600 level as massive support, not only due to the fact that it was previous resistance, but it is also an area where the 50 day EMA is starting to cross. Because of this, there is a bit of technical influence there and I think it should offer a “hard floor” in this market, thereby I think a lot of buyers would jump into this market looking for value.

S&P 500 Video 24.12.20

To the upside, I think the longer-term target would be the 4000 level, based upon the fact that we have just broken out of a 400 point consolidation area, and the extrapolated target should send the market 400 points above the breakout at 3600. All things being equal, this is a market that I think finds plenty of reasons to go higher, especially if traders are trying to get involved in the “FOMO trade.” That being said, the market is likely to see a lot of upward pressure given enough time, and therefore I have no interest whatsoever in trying to short what has been a very strong move.