S&P 500 Price Forecast – Stock Markets Continue to Challenge Highs

The S&P 500 went back and forth during the trading session on Friday, as we continue to see a lot of noise. We are close to the all-time highs of 3400, so it does make quite a bit of sense that we are struggling as there is the psychological resistance of trying to crack an all-time high. If we can break above there, then the market is likely to go even higher, perhaps reaching towards the 3500 level after that. To the downside, I think there are plenty of buyers at multiple levels, not the least of which would be the 3350 handle, the 3300 level, and then eventually the 3200 level.

S&P 500 Video 17.08.20

The 3200 level was previous resistance, and it now should offer significant support as we had seen a couple of weeks ago. The 50 day EMA sits in that same area, so it makes sense that it would also be an opportunity for buyers to get involved. Stocks continue to get a boost from the Federal Reserve flooding the markets with liquidity, and I think that is the way to go at this point, looking for the stock market to simply pick up bits and pieces of value on dips.

I have no interest in shorting the market, it is far too strong at this point in time and therefore it is difficult to imagine a scenario where we could short this market with any type of confidence. At this point, I am a buyer of dips and breakouts and simply will wait for opportunity going forward as the Federal Reserve will step into the markets that they have to.

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