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S&P 500 Price Forecast – Stock Markets Break the 3500 Barrier

By:
Christopher Lewis
Published: Oct 12, 2020, 15:36 UTC

The S&P 500 rallied significantly during the trading session on Monday, as we continue to see a lot of hopes out there based upon stimulus.

S&P 500

The S&P 500 has rallied significantly during the trading session yet again on Monday, as traders continue to pay attention to the idea of stimulus and whether or not there will be some type of fiscal package coming out the United States. At this point, the market is likely to see a lot of noise, and we are getting a little bit overextended at this point. That being said, I like the idea of buying pullbacks, because quite frankly the momentum of the market is clearly to the upside of the last thing you want to do is trying to fight it.

S&P 500 Video 13.10.20

 

The 3400 level underneath should be an area of support, as it was a breakout level that we had broken through. The 50 day EMA sits below at the 3344 level, so I think ultimately that pullbacks are buying opportunities, as we clearly have a lot of momentum and “FOMO” out there. It is more than likely going to be a scenario where people are looking to buy dips based upon the idea of value. If stimulus does in fact come into the picture, even if it is after the election, the stock market will try to “front run” that scenario.

Furthermore, if the US dollar does continue to lose momentum and value, that will also push risk assets such as the S&P 500 higher. I have no interest in shorting this market, because quite frankly the market is designed to go higher. If we can break above the 3600 level, then we will simply extend the longer-term trend that we have been in for quite some time.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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