S&P 500 Price Forecast – Stock Markets Break To A Fresh New High

Stock markets rally during the trading session on Thursday, based upon a tweet by Pres. Donald Trump that a deal with China was very close. We have seen this movie before.
Christopher Lewis
S&P 500 Price Forecast - Stock Markets Break To A Fresh New High

The S&P 500 has rallied significantly during the trading session on Thursday, breaking to a fresh, new high. Ultimately, this is a market that continues to be positive longer term, but after a tweet by Donald Trump suggesting that a deal with China was relatively close, we had seen a significant reaction as algorithmic traders continue to be going nuts. At this point in time it’s likely that we will continue to see pullbacks as buying opportunities but don’t be surprised at all that if by the end of the day Friday we don’t get word of a delay of the tariffs by Donald Trump, that the market pulls back significantly.

S&P 500 Video 12.12.19

If the tariffs do in fact go into effect, it’s likely that this market will gap down on Monday, so at this point it’s probably best to leave it alone. Having said that, I certainly would not want to be a seller of the S&P 500 in this type of environment, as it is showing no proclivity to go lower on the whole. If we do get that gap lower on Monday, it’s likely that the 3100 level will be supportive, and of course the 50 day EMA as well as the 3000 handle. All things being equal I do like the S&P 500 in the short term, but I recognize the next 24 hours or so could be a bit dicey. We still have the 3200 target above based upon the ascending triangle, and therefore we should be paying attention to that as a potential target. Don’t forget the “Santa Claus rally” either.

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