S&P 500 Price Forecast – Stock Markets Continue to Grind Higher OverallThe S&P 500 has been relatively quiet on Thursday, which probably is not a huge surprise considering that we are approaching the all-time highs.
The S&P 500 has been relatively quiet during the trading session on Thursday, showing that perhaps traders are a bit hesitant to press the issue now that we are getting so close to the all-time highs. Having said that though, if we can break above the 3400 level it is likely that we will continue to go towards the 3500 level which is a larger round figure that will attract a certain amount of attention. Quite frankly, this is a market that is very much in an uptrend and although we have recovered almost completely from the massive selloff due to the pandemic, the reality is that the market is moving on Federal Reserve liquidity more than anything else.
S&P 500 Video 14.08.20
We are in an election year. The Federal Reserve is not going to be tightening monetary policy anytime soon, and of course Trump will do everything he can to lift the markets. At this juncture, it is very likely that we will continue to see a lot of bullish pressure and pullback should be thought of as opportunity to pick up the S&P 500 “on the cheap.” Looking at the chart, I am especially interested in the 3200 level if we do reach towards that area, as the 50 day EMA is sitting there as well. I do not even necessarily think we do see that pullback, just that I would be very interested in that level. On the other hand, short-term pullback should continue to offer nice short-term buying opportunities, and I would become a bit more aggressive once we clear the 3400 level. Shorting is not even a thought.
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