S&P 500 Price Forecast – Stock Markets Continue to Show StrengthThe US stock markets continue to show resiliency overall, although it was a bit quiet during the trading session on Thursday. The market currently covers just below the 3400 level, and I think we are trying to build up the necessary pressure to break above it.
The S&P 500 has gone back and forth during the trading session on Thursday to show signs of confusion, but the one thing that I take away from the candlestick is that the market has buyers underneath willing to pick it up every time it drops. The 3350 level underneath should offer support, and most certainly the 3300 level will. The 50 day EMA is starting to march towards the 3300 level in the air is an uptrend line underneath there. In other words, there are a lot of technical factors that could come into play and support this market, and it’s obvious that the market wants to go higher.
S&P 500 Video 21.02.20
At this point, if we can break above the 3400 level then I think we will try to go towards the 3500 level which has been my longer-term target for some time. Quite frankly, it looks as if we are going to get there much quicker than anticipated, but when you recognize that the Federal Reserve is willing to come in and provide liquidity anytime there is the slightest hint of stress, you understand that the stock markets are a function of Federal Reserve policy, not anything else. Yes, a good economy in the United States can help, but at this point a lot of the flows coming into the S&P 500 are people trying to escape poor economic performance in places like Asia or the European Union. By default, the S&P 500 is probably the biggest game in town. I continue to buy short-term dips.