S&P 500 Price Forecast – Stock Markets Continue Sideways GrindingS&P 500 has done very little during the trading session but that is not a huge surprise considering that Christmas is Friday. But we still look well supported.
The S&P 500 went back and forth during the course of the trading session on Tuesday, as we continue to see a lot of support underneath. The 3600 level underneath offered significant support during the previous session, and of course the 50 day EMA is starting to reach towards that level. That of course is a large, round, psychologically significant figure and was the previous resistance of the consolidation that we just broke out of. The measured move is for 400 points, which extends the market towards the 4000 level. That being said, I have no interest in trying to short this market and I think that pullbacks continue to offer value.
S&P 500 Video 23.12.20
This does not mean that we cannot break down or that we shoot straight up in the air, but the reality is that it is a longer-term target. I have no interest in shorting this market, because quite frankly stimulus is going to continue to be a major factor now that it has been signed. Beyond that, Chuck Schumer in the Senate has already suggested that more stimulus is probably coming. As long as that is going to be in the back of the minds of traders, that continues to give them a reason to start buying.
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Pay attention to the US dollar, because if it starts to rally, that could be the one thing that the rails the market, but the biggest thing you need to pay attention to is that there is a serious lack of volume. Because of this, you cannot trust the markets too much, but the longer-term uptrend is very much intact.
For a look at all of today’s economic events, check out our economic calendar.