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

The S&P 500 has rallied slightly during the trading session on Wednesday, but the 3600 level continues to be a major issue and therefore it is likely that we will see a bit of selling in that general vicinity. Ultimately, this is a market that I think will continue to act sluggish at this point, as we try to figure out what is going to happen with stimulus in the United States. Remember, Wall Street only cares about stimulus and cheap money, not about earnings. Because of this, a lot of people have no idea what to do, because there is so much chaos with the idea of what could come out of Congress.

S&P 500 Video 12.11.20

Furthermore, the next makeup of the Senate is going to be highly contested as we have a run for the last two Senate seats in Georgia, and that of course could change everything. I believe that in the short term we have no clarity, and one could even make an argument for a potential “rounding top” at the moment. However, if we break above the massive candlestick on Monday, then it is likely that we would continue much higher.

Do not get me wrong, I have no interest in shorting the stock market, but I do think that we are running out of something that is very important after this type of move, and that of course is momentum. I expect a short-term pullback, but I think that offers value given enough time. That being said, one area of interest could be the 3400 level as it has the 50 day EMA as well.

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