S&P 500 Price Forecast – Stock Markets Continue to Sit at Top of Range

The S&P 500 continues to struggle with the 3600 level, so it makes sense that we are just simply sitting here. Ultimately, I think that this is a market that goes higher over the longer term, but I think in the meantime we probably get a couple of pullbacks. The 50 day EMA sits at the 3440 handle, and of course we have a massive support level at the 3200 level. That being said, I think that the 200 day EMA in that area is also a reason to look for buying opportunities. In general, I think this is a market that can go higher but we have gotten a little bit extended. I think that pullbacks offer value, because quite frankly money is flowing into this market and it is difficult to see how the trend suddenly changes.

S&P 500 Video 23.11.20

I think at this point in time we are trying to figure out whether or not we are going to trade based upon a vaccine coming, or do we have to worry about the economy between now and then? I think it is probably a little bit of both, so ultimately, pulling back is the best thing we can do because it offers at least some relief, and an opportunity to pick up value in what has been a longer-term uptrend. After all, the whole art of trading has to do with picking up value when you can and dumping when things get too expensive. I have no interest in shorting this market, but I do recognize that we may be lacking momentum going forward, lease for the time being.

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