S&P 500 Price Forecast – Stock Markets Continue To Find Buyers

The Globex session in the S&P 500 E-mini contract was rather ugly, you but in what starting to become a reoccurring theme, Asian traders gave way to stronger traders in other parts of the world. Ultimately, this is a market that should continue to see a lot of volatility but strength when it comes to the United States. When New York gets involved, they start buying again because the US economy is not hurting the way that Asia is and of course Europe as well. With this, money is starting to flow into the United States due to the perceived safety factor of using US companies for investment.

S&P 500 Video 11.02.20

Looking at the chart, there is also a nice uptrend line underneath that should continue to push this market higher. The 50 day EMA is of course going to offer support as well which is crawling right along with this trendline. The 3300 level holding of course makes quite a bit of sense as it is a large, round, psychologically significant figure, but not only that it was a scene where we had seen previous resistance as well. In other words, there is a lot of order flow at the 3300 level and it seems as if traders have been trying to “buy the dip” in general. With that, I believe that the market will eventually go looking towards the 3500 level, but I don’t know that we get there quickly. There are a lot of concerns out there and as a result it probably takes quite a while to get there. If we break down below the 50 day EMA, then we need to step back for a while to let the market catch its breath.

Please let us know what you think in the comments below