S&P 500 Price Forecast – Stock Markets Get Extended Even Further

The S&P 500 rallied a bit during the trading session on Thursday, as we reached towards the 3500 level. This was my target for the year, so needless to say we might be a little bit overdone. At this point in time, I think a pullback towards the 3400 level will more than likely attract a lot of buying pressure, and I would love to see that. That being said, the S&P 500 tends to move in 200 point increments, which means we are now looking at the idea of an S&P E-mini contract at 3600.

S&P 500 Video 28.08.20

Regardless, there is no way you can short this market, even if it is overdone. Quite frankly, I know some traders that have been short for a while and now are essentially in the business of hoping that the market turned around so they can escape with their account somewhat intact. That being said, just because the market looks expensive or looks like you cannot go higher from here does not mean that it is true.

We are most certainly in an uptrend, and now is the time to “embrace the stupidity.” Look for value, look for the stock market on sale. It certainly is not here, so what we need to see is a pullback in order to get long unless of course you already are. The candlestick from Wednesday gave us a bit of a “heads up” that we are ready to go higher again, so this is a simple continuation of that momentum.

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