S&P 500 Price Forecast – Stock Markets Continue to Find BuyersThe S&P 500 drifted a bit lower on Monday but continues to find a bit of support at the 3200 level. It looks like we are going to continue much of the same.
The S&P 500 has pulled back a bit during the trading session on Monday to test the 3200 level yet again. This is an area that has been important multiple times, so it is not a huge surprise to see buyers in this vicinity. By bouncing from here, the market is likely to send itself towards the 3400 level, although it may take some time to get there. I think at this point it is difficult to fight the trend, even though we are in the midst of earnings season and of course the Federal Reserve has something to say this week with its meeting. Nonetheless, the Federal Reserve is not going to do anything to turn the market around, so it will be a nonevent.
S&P 500 Video 28.07.20
Earnings season does cause a lot of noise, but in a market that is driven solely by the Federal Reserve liquidity, any pullback is simply noise that you can take advantage of. Fundamental traders have gotten absolutely slaughtered over the last decade, even though you will read them complaining online on an almost daily basis about how “the market has decoupled from the economy.” I agree with them 100%, but you have two options here: you can either be profitable, or you can be “correct.” Sometimes the market does not do what the market should do, which quite frankly is an open ended question at all times anyway. We are moving from the lower left to the upper right, and at the end of the day that is truly all that matters. Respect your position size, and you will do okay.
For a look at all of today’s economic events, check out our economic calendar.