SP 500 Price Forecast – Stock Markets Continue to Look a Bit Exhausted

The S&P 500 gapped higher slightly at the open of the Globex session on Thursday, but then started falling almost right away. The market is at the top of the larger range so this makes quite a bit of sense and quite frankly there is no reason to think that stock should go up at this point. Yes, we have the vaccine coming but quite honestly that is something that remains in the future and between now and then we have a lot of concerns when it comes to lockdowns and the like as economies are most certainly going to suffer.

S&P 500 Video 13.11.20

Beyond that, the market looks as if it is trying to form a bit of a “rounding top”, at the top of what is a relatively obvious resistance barrier. With that being said, I think that we are probably prone to short-term burst of negativity, but I would not be a seller at this point. I think there are more than enough reason to think that Wall Street will go out of its way to find a narrative that pushes stocks higher, as it typically does. The 50 day EMA underneath at the 3400 level of course offer support, but it will be interesting to see how a new administration in the White House affects the stock market going forward as Donald Trump was very focused on the stock market, where Joe Biden is more than likely not going to be.

That is one of the major cheerleaders for Wall Street leaving the picture, so we may get the occasional pullback, but longer-term Wall Street finds a reason to buy stocks. The narrative changes on an almost daily basis but it is a “buy the dips” type of market.

For a look at all of today’s economic events, check out our economic calendar.