S&P 500 Price Forecast – Stock Markets Briefly Make All-time High

The S&P 500 has rallied initially during the trading session on Thursday but gave back the gains in order to show extreme weakness. It seems as if New York was in the mood to capitalize on the sudden gains during the previous session, as perhaps they were a little bit overdone. With that being the case, it does make a certain amount of sense that perhaps this is going to be a scenario where we will simply chop around between now and the end of the year. After all, the market is entering holiday trading, which is characterized by a severe lack of liquidity.

S&P 500 Video 17.12.21

That being said, we are still very much in a bullish move, and you could make an argument for an ascending triangle that is trying to get broken out of. I still believe that we probably go looking towards the 4800 level, because despite the fact that it was such a brutal selloff at the open, the reality is that we are just a few tenths of a percent below the all-time highs. The 50 day EMA is currently sitting right around the 4600 level, and of course is curling higher. We also have the potential of a “Santa Claus rally”, as traders are trying to catch up with benchmarks. That being said, a lack of liquidity could make the markets a very dangerous place to be if you are on the wrong side of a sudden spike. Because of this, I tell everybody that I know that during this time a year I tend to trade with about 1/3 my normal position size.

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