S&P 500 Price Forecast -Stock Markets Drifting Into the Holidays

The S&P 500 has done almost nothing over the last 48 hours but quite frankly that should not be a huge surprise. Sooner or later, people start to focus on the holidays unless on trying to pick up a few bucks. Yes, we have the Santa Claus rally for a few days, but really at the end of the day we are looking at a scenario where we are more likely than not just going to drift around for a little while, perhaps even pull back a bit until we head into the next month.

S&P 500 Video 30.12.21

At that point, the main driver of markets will probably end up being the jobs number, meaning that it could be a quiet first couple of days but eventually I would anticipate that once we get that out of the way we could make a bigger move. I do believe that we will continue to go higher but we could get a little bit of a pullback in the meantime that we can take advantage of for momentum. All things being equal, this is a market that I think is already setting up for a strong January. The one thing you can probably count on from Wall Street is some type of narrative to push the markets even higher, because that is what Wall Street does, drive narrative is.

To the downside, I believe the 4500 level is the absolute “floor the market.” As long as we stay above there then there is no reason to worry about the overall trend anytime soon.

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