S&P 500 Price Forecast – Stock Markets Continue Relentless Grind Higher

Stock market traders are getting excited about the possibility of stimulus, and therefore “guaranteed gains.” Do not believe me? Take a look at any time this is happened in the last 13 years. That being said, it does not necessarily mean that we go higher for very long. It could be a “sell the news” type of event, but I think there are plenty of buyers underneath to get involved in this market and take advantage of lower pricing, and of course previous resistance in the form of the 3600 level. I think that we probably could find plenty of buyers in that area right along with the 50 day EMA which is currently at the 3525 handle.

S&P 500 Video 10.12.20

All things being equal, I think we go looking towards the 4000 level over the longer term, but that is probably a story for next year. I believe at this point in time we are going to continue to see a lot of noisy trading and a lot of rumors, but at the end of the day Wall Street only buys stocks and shorts them for very small increments. Overall, I think that you should be looking for pullbacks as an opportunity to get involved in what has been a very strong uptrend, and therefore it is not worth fighting. I would anticipate a lot of noise around the stimulus talks, but ultimately, we will get to where we need to go, and stock traders will get that monetary methadone they so desperately need. Remember, the markets have nothing to do with economic indicators so simply look at pullbacks as an opportunity to take advantage of the week hands.

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