S&P 500 Price Forecast – Stock Markets Break to Fresh New Highs

The S&P 500 has rallied a bit during the trading session on Friday to break towards the 3700 level. Ultimately, if we do see a pullback in this market that will be plenty of buyers willing to jump on it. The jobs number was a bit disappointing, but it seems as if Wall Street is expecting more stimulus going forward, and it should be noted that Nancy Pelosi and Steve Mnuchin have been talking. With that being the case, that “cheap money” is what Wall Street will be looking for.

S&P 500 Video 07.12.20

It now looks as if the 3600 level should be a bit of a floor in the market but regardless, I do not see any reason for shorting this market even if we break down below there. The 50 day EMA is sitting at the 3500 level, so that is also another area where I would be looking for buyers to step in and pick up the market. We are in an obvious uptrend, and therefore there is no need to be shorting this market. Any time we pull back you need to be looking at some type of value play.

If you have been watching my videos over the last couple of weeks, you know that I was talking about the area that we just broke out of being a 400 point consolidation area, and now it looks as if we are going to be aiming for the 4000 level. The markets will look at 4000 is a major barrier, and I do not necessarily think that we get there between now and the end of the year. However, when you extrapolate the move out, it does suggest that we are going there.

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