S&P 500 Price Forecast – Stock Markets Quiet Heading Into Christmas

The S&P 500 has gone back and forth during the trading session on Thursday, and a very tight range as there seems to be little interest in putting money to work as we head into Christmas. The next week or so is going to be very thin, so I think more than anything else we are going to see this market go sideways. Underneath at the 3600 level I think it is a large, round, psychologically significant figure that will continue to be important. The market has been bouncing around between the 3200 level and the 3600 level. It measures for a 400 point move, which could send this market to the 4000 level. Ultimately though, we have some work to do but the 50 day EMA is sitting just below the 3600 level.

S&P 500 Video 28.12.20

Looking at this chart, I believe that the 3700 level gets targeted initially, and then goes looking towards the 3800 level. All things being equal, the market is likely to go higher, but we may have a couple of days of sideways and quiet action. At this point in time, we are still very much in an uptrend and it should continue to be so as we will almost certainly get a ton of stimulus coming out of the government in 2021. There is almost no scenario in which I see the stimulus not happen, despite the fact that recently we have a lot of push and pull over the direct payments to Americans. Ultimately, we will eventually see something past and Wall Street will celebrate as the stimulus payments typically will flood a lot of money into the market and send everything higher.

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