S&P 500 Price Forecast – Stock Markets Continue to Rally

The S&P 500 has rallied slightly to kick off the trading session on Monday and looks as if it is ready to go looking towards the highs yet again. I think it is only a matter of time before we break out and really at this point it is a question of whether or not we can build up the necessary momentum? With that being the case, I think that buying the dips will continue to be the easiest way to trade this market, because quite frankly there is so much in the way of bullish pressure up there.

S&P 500 Video 18.08.20

With the Federal Reserve out there backing up the stock market, it is not a huge surprise that we have seen a lot of buying pressure and quite frankly there seems to be an air of invincibility. Do not get me wrong, that is normally a negative sign but at this point in time I do not think were quite there yet. Ultimately, I think that we will break above the 3400 level and then go looking towards the 3500 level.

To the downside, the 3300 level is supportive, and quite frankly I think the 3200 level is now going to act as the “floor” in the market as the area should continue to attract a lot of attention as it had a couple of weeks ago, and with the arrival of the 50 day EMA should only be more so supportive than back then.

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