S&P 500 Price Forecast – Stock Markets Break Out AgainThe S&P 500 has broken out to the upside on Monday. Now that the 3400 level is broken out and above, we can continue to go much higher.
The S&P 500 has rallied a bit during the trading session on Monday as we have cleared the 3400 level. At this point in time, the market is likely to go looking towards the 3500 level, a large, round, psychologically significant figure that a lot of people will be paying attention to. Because of this, I think it is only a matter of time before we get there, and at this point I believe that short-term pullbacks continue to be buying opportunity. Furthermore, Jerome Powell is speaking at Jackson Hole later this week and will probably say or do whatever it takes to keep Wall Street going.
S&P 500 Video 25.08.20
What is particularly interesting is the fact that we had formed a couple of hammers during the previous couple of sessions, showing that there was a real push to break out. Now that we are finally done that, expect a short-term pullback and then a continuation of what we had seen previously. As long as the US dollar remain somewhat on the back foot, that should continue to push this market higher.
Beyond that, we are in an uptrend anyway so there is no point in fighting it and the fact that we have wiped out the coronavirus meltdown suggests that the market is looking forward towards life without the pandemic, and the only fundamental analysis at this point is whether or not the central banks will continue to devalue currency. It looks as if there is absolutely no hint that they are going to change anytime soon so I remain bullish and buy on dips.
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