S&P 500 Price Forecast – Stock Markets Continue to Press HigherThe S&P 500 continues to look “high, wide, and handsome” as it grinds through various resistance barriers. We are on the precipice of a breakout to the upside.
The S&P 500 has rallied a bit during the trading session on Monday, slicing through the 3200 level. That being the case, it looks like the market is going to continue to see a lot of bullish pressure, but we are starting earnings season now. This means that we could get the occasional move based upon a headline, but Wall Street has a magical way of looking past the real economy so I have no doubt that if we do get some type of negative shocked, there will be a new narrative to spend the market higher.
It will be much like traders who are now looking at “2022 earnings” to value stocks. This is the most ridiculous thing I have ever seen, but you cannot fight the market. The only thing that will happen in that scenario is that you lose a lot of money.
S&P 500 Video 14.07.20
At this point, it is obvious that you are to be buying dips, and I think there is a significant amount of support around the 3125 handle, so I would like to see a significant break down that I can take advantage of. I do not know that we get it, but a move above the 3225 level also signals that we are going higher, perhaps to the all-time highs above, which ultimately, I think is the target anyway. As long as the Federal Reserve is flooding the market with a ton of cash, stocks go higher.
For a look at all of today’s economic events, check out our economic calendar.