S&P 500 Price Forecast – Stock Markets Quiet To Open Holiday Week

Stock markets were very quiet during the trading session on Monday as traders came back to low-volume trading overall. At this point, the market is a bit overextended so it’s likely that the players will continue to look at this is a market that should be barred, but it is overextended.
Christopher Lewis
S&P 500 Price Forecast - Stock Markets Quiet To Open Holiday Week

The S&P 500 is a bit overextended at this point, and on Monday it has been very quiet. This should not be very surprising though, because quite frankly the market is extraordinarily overextended, and well above the target that I had at 3200. Ultimately, the market is likely to see a bit of a pullback rather soon but given enough time it’s likely that the longer-term buyers will get involved. Between now and the beginning of the year though, it’s difficult to imagine that a lot of traders will be excited to get involved. I think at this point January should be rather good, but overall, it’s very likely that the value hunters will be back.

S&P 500 Video 24.12.19

The 50 day EMA is currently crossing the 3100 level, so I look at that as the “floor” in the market, and I think it’s only a matter of time before that EMA would offer a lot of support. To the upside I expect the 3300 level be a target, and then eventually the 3500 level. With that, I believe that the market cannot be sold until we break down below the 3000 level, something that seems to be very unlikely to happen anytime soon. The US stock market continues to get lifted due to the cheap money flowing out of the Federal Reserve, and of course at this point the markets have been a “one-way bet” for quite some time.

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