S&P 500 Price Forecast – Stock Markets Continue to Grind Higher

The S& 500 has seen a lot of bullish pressure for the last several weeks, and now it looks like that breaking through the gap should open up the possibility of moving towards the 3400 level. That is a longer-term target that I have been watching for some time, and I do think that it is only a matter of time before the market breaks above there. After all, the Federal Reserve continues to flood the market with greenbacks and that dries down the value of the US dollar. Money managers do not withhold on the money and there is no yield to be had in bonds at this point, so stocks continue to rise.

S&P 500 Video 12.08.20

Pullbacks at this point should see plenty of support at the 3200 level, with the 50 day EMA just underneath there. The 3200 level is massive support as we have seen in just the last few weeks, and now it looks like we should continue to see plenty of buyers. Buying on dips continues to work more than not, and the liquidity should continue to be a major issue. If we can break above the 3500 level, then the S&P 500 will take off to the upside yet again. I fully anticipate that happening eventually, but this is based upon liquidity more than anything else. Remember, fundamentals have nothing to do with what stock markets do, as earnings season was somewhat mixed, but the flood of currency continues to be the thing that everybody pays the most attention to. Looking at this chart, I remain bullish.

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