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Christopher Lewis
S&P 500 Price Forecast - Stock Markets Confused By Trade Deal

The S&P 500 went back and forth during the trading session on Friday, as we continue to see a bit of confusion around the trade war and the “phase 1 deal” that has just been signed. Ultimately, this is a market that should go looking towards the 3200 level, and possibly beyond. There is the “Santa Claus rally” that is typical for this time a year but quite frankly I think a lot of traders will be looking for some type of pullback in order to get involved. The uptrend is very much intact, but I like the idea of buying a pullback as it offers a bit of value. The 50 day EMA underneath should continue to attract a lot of attention as well, which is currently sitting at the 3077 level.

S&P 500 Video 16.12.19

The market has been a bit overbought for some time, but the recent pullback may have helped a bit. I think that looking for value, i.e. pullbacks, is probably the best way to go going forward. If we can break above the 3200 level it then opens up the opportunity of a move towards the 3050 handle. To the downside, the 3000 level should essentially be the “floor” in the market as it is a large, round, psychologically significant figure, and the top of the ascending triangle from previous trading. I have noticed in shorting the S&P 500 this time of year but I recognize it looks like we may be a bit lackluster.

Please let us know what you think in the comments below

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