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S&P 500 Price Forecast – Stock Markets Pull Back From Extreme Highs

By:
Christopher Lewis
Published: Nov 17, 2020, 16:07 UTC

The S&P 500 has pulled back a bit on Tuesday, as the 3600 level has been a bit too much. The week retail sales numbers did nothing to help either.

S&P 500

In this article:

The S&P 500 has pulled back a bit during the trading session on Tuesday, reaching below the 3600 level. At this point time, it is obvious that the market is starting to struggle a bit with the idea of ignoring gravity. Having said that, I think there are plenty of buyers underneath and I have no interest in trying to short a market that is obviously so bullish. With this, I like the idea of looking for value underneath, perhaps near the 3500 level.

S&P 500 Video 18.11.20

Looking at this chart, the Monday candlestick from the previous week has shown an extreme amount of bullish pressure due to the announcement of a vaccine, but we have given all of that back and now are fighting to take it back yet again. Having said that, I think what we are looking at is a scenario where we will eventually break out, but we need to build up a bit of momentum.

Looking at this chart, the 50 day EMA is also an area where we could be interesting to start buying based upon support. The market is obviously in an uptrend, and of course liquidity will come into the equation eventually as well. After all, Wall Street is on liquidity and not fundamentals, and as long as the central bank in the United States is willing to flood the market with that liquidity, Wall Street will only go higher as asset inflation is the one way they know to at least make the economy look as if it is growing.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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