S&P 500 Price Forecast – Stock Markets Continue to Enjoy Santa Claus Rally
The S&P 500 has rallied during the course of the trading session on Monday as traders have come to the conclusion that Friday did not really matter. After all, there was almost nobody trading, so the panic selling from the virus situation was overdone. Furthermore, we are starting to see reports that the mutation is not as strong as the original virus, and if that is of course going to be the case, then it makes quite a bit of sense that we would see a recovery.
S&P 500 Video 30.11.21
The 50 day EMA attracts a lot of attention just underneath, so therefore think it is worth paying some attention to, as a lot of traders will use it as dynamic support. That being said, the market is likely to continue the overall uptrend as we have the “Santa Claus rally” happening at the moment.
This is when money managers around the world chase the market in order to bring in some type of return. After all, there are people out there that have underperformed their benchmarks, and the rest of the world knows it. In other words, every time there is a dip, there are going to be buyers to pick it up. That being said, it is not until we break down below the uptrend line that I have drawn on the chart that I even remotely consider buying puts. I never short this market, I learned a long time ago that it is a great way to lose money. At this juncture, I believe 4800 is calling.
For a look at all of today’s economic events, check out our economic calendar.