S&P 500 Price Forecast – Stock Markets Pull Back

Stock markets pulled back a bit during the trading session on Monday to kick off the week, as we have gotten a bit overextended. I suspect that there is quite a bit of profit-taking out there.
Christopher Lewis
S&P 500 Price Forecast - Stock Markets Pull Back

The S&P 500 fell a bit during the trading session on Monday to kick off the week, reaching towards the 3200 level. Quite frankly, this isn’t much of a surprise considering that a lot of end of the year profit-taking should be going on by money managers trying to bring back returns and boost the numbers for their clients.

S&P 500 Video 31.12.19

With that being said, I think that the next couple of days will probably see a bit of a drift lower but at this point it’s probably better to simply look for buying opportunities based upon support or some type of bounce. This means you may have stay out of the market for a couple of days but at this juncture the lack of volume probably makes that important anyway. The market pulling back towards the 3150 level makes quite a bit of sense, especially considering that the 50 day EMA is starting at in that general direction. All things being equal, I like the idea of buying some type of pullback to find value, because quite frankly the market has been so bullish out of late that you can’t fight the overall trend. With this, enjoy the holiday and start looking towards the markets on Thursday and Friday, especially the following week as there are plenty of traders out there that will need to get into the marketplace and put positions on in order to fulfill client demands. All things being equal though, this is a very strong market longer-term, and looking at a pullback makes quite a bit of sense as an opportunity to pick up the S&P 500 futures contract “on the cheap.”

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