S&P 500 Price Forecast – Stock Markets Continue to Reach New Highs

The S&P 500 has initially pulled back a bit during the trading session only to turn around and show signs of strength yet again. With the US dollar losing strength, it does suggest that we are going to continue to see the stock market go higher, and quite frankly this ascending triangle of sorts looks like it is ready to take off due to the jobs number. Ultimately, this is a market that I think is a “buy on the dips” type of market, and therefore I have no interest in shorting. Quite frankly, the 3600 level underneath should be massive support.

S&P 500 Video 04.12.20

Ultimately, the market is probably prime to go to the 4000 level given enough time, but we do have the Non-Farm Payroll announcement coming out during the trading session on Friday, so it is very likely that we will see a bit of volatility. Regardless, if we pull back, I think it will only end up being a buying opportunity for this market, because if there is one thing that Wall Street is good at, it is going to be creating a narrative to start buying yet again. Ultimately, measuring the move from the recent consolidation does send this market to 4000 as mentioned previously, although it does not necessarily have to happen in the next couple of days.

This is a longer-term call and I do think that longer-term traders are aiming for that. We also are in the midst of that time a year where we get the so-called “Santa Claus rally”, and it appears that it is in fact going to show itself yet again at this point.