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

The S&P 500 has pulled back slightly during the trading session on Wednesday, but then turned around to recover. Keep in mind that Thursday is Thanksgiving, so there will not be in the underlying trading on the index itself going on. Wall Street will be close, but there will be a certain amount of electronic trading going on, but it will only be for a handful of hours here and there. In other words, you probably do not want a lot of money in the market.

S&P 500 Video 25.11.21

That being said, this consolidation is actually good news as we have continued to grind away sideways. There is the old adage “never short a quiet market”, and I think that comes into play here as traders coming back from the Thanksgiving holiday will have to start chasing the market in order to make reasonable gains to show their clients. Because of this, I think any dip will be bought into, fermenting the so-called “Santa Claus rally” it tends to happen this time of year every year. The 4600 level underneath will offer support as well, right along with the 50 day EMA that is just below there. All things been equal, this is a market that will probably go looking towards the 4800 level over the next several weeks, and therefore I do not have any interest in shorting it.

Friday will be somewhat limited in its trading hours as well, as far as the New York Stock Exchange is concerned. In other words, the next couple of days will probably not be much, but once we get back to work on Monday we should see a continuation of the overall uptrend.

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