S&P 500 Price Forecast – Stock Markets Drift Lower to Close Year

The S&P 500 has drifted a little bit lower during the trading session on Friday as we continue to see a bit of a malaise heading into the next year. That being said, it should not be thought of as too much, due to the fact that the market is simply getting exhausted in most traders are even involved at this point. With this in mind, I think that there will be a certain amount of value offered rather quickly, and that most people will probably jump in and try to take advantage of any value.

S&P 500 Video 03.01.22

Keep in mind that the market will continue to be a bit thin for the first couple of days of the week, as traders are starting to put money back on to their books. Nonetheless, there is nothing on this chart that suggests that is going to go lower over the longer term, so quite frankly that is probably the most important take away here. The 4500 level looks to be the absolute “floor the market”, and it is not until we break down below there that I would take any pullback seriously.

Keep in mind that the nonfarm payroll number comes out on Friday so things might be a little bit sluggish between now and then but once we get through that announcement it is likely that we would see more normalcy when it comes to liquidity and the like. Regardless, the one thing that I certainly do not see here is an opportunity to start shorting, and I do not think that the Federal Reserve is going to do anything to upset the apple cart.

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