S&P 500 Price Forecast – Stock Markets Continue With Bullish Pressure

The S&P 500 looks a bit overstretched at this moment, but quite frankly that is the normal state of things anymore. With the Federal Reserve out there being complicit in propping up a stock market that fails to show price discovery, there is no point in fighting the Federal Reserve. Dips are to be bought, as traders are starting to talk about valuations going into 2022. This is beyond ridiculous, but at the end of the day Wall Street already knows that if they get too far ahead of their own skis, Jerome Powell and company will step in to protect them.

S&P 500 Video 19.11.20

In that environment, risk is no longer something that people are concerned about. Unfortunately, that leads to a lot of highly levered speculation. The biggest concern that you will have trying to buy the dips in this market is whether or not we break down significantly. However, if you are cautious about it and try not to put on two big of a position, we have learned of the last 13 years that eventually the market does bounce back, and most of the time it does so quite drastically. Because of this, I believe that the 3600 level will be supportive, but I also recognize that the 3500 level will be as well.

Somewhere in that area I would expect to see a massive amount of volume coming into the market, as traders continue to bet on what could be a bullish economy going forward now that there is a vaccine coming within a year.

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