S&P 500 Price Forecast – Stock Markets Continue to Show Signs of Life Underneath

The S&P 500 pulled back slightly during the trading session on Tuesday in early Globex trading, but the 3200 level seems to be offering support. At this point in time, it is likely that we will continue to find buyers on dips, because quite frankly there are a lot of people that are still trying to catch up on a year-to-date term, and of course the Federal Reserve has a two day meeting going on right now that will likely suggest that there is more quantitative easing coming or at least that the Federal Reserve is going to be extraordinarily loose with the monetary policy. In other words, risk appetite will continue to be extraordinarily strong as monetary stimulus has been the one consistent theme that has worked over the last 12 years.

S&P 500 Video 10.06.20

Granted, I recognize that the market is overextended but quite frankly I have no interest in shorting. Even if we do break down from here it is likely that we will see plenty of buyers sooner or rather than later. I think the 3000 level is now considered to be the “floor” in the market, and therefore think it is only a matter of time before we get some type of supportive daily candlestick even if we do break down. To the 3400 level above is where I believe we are going, as the market has already hit all-time highs in the NASDAQ 100, so it is only a matter of time before the S&P 500 catches up with that index.

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