S&P 500 Price Forecast – Stock Markets Rally Above 3500

The S&P 500 has shot straight up in the air during the early hours on Thursday, as we reach a potential conclusion to the US election. Having said that, the FOMC Meeting still has a statement that is coming out, and we have a whole host of other messy issues ahead of us. After all, as Wall Street has shown us for the last 12 years, it is all about stimulus. “Will we get our cheap money?”, asks Wall Street. If they do, then they will celebrate as they have every year for the last 12 years. However, if they do not it is likely that we will see stock markets implode.

S&P 500 Video 06.11.20

Unfortunately, Wall Street already knows that if it throws a temper tantrum, the Federal Reserve or the US government will come in and bail them out. I simply selling stocks, they have trained the government to come in and throw money at the problem. The next move will be rather interesting, because it will show what the Biden administration may do. Whether or not they will bail out Wall Street is an open-ended question, but I am willing to bank that they will. In other words, I fully anticipate that there some type of major correction coming a, only to see another massive rally.

In the short term, I think you need to keep an eye on the 3600 level, because if we break there and continue going higher, then it is likely that we could go looking towards the 4000 level. What the market wants to see is a bit of certainty, which it has not had as of late. However, that is a short-term buzz that will quickly wear off. Pullbacks to the 3200 level are still very possible, but I anticipate that we will get anywhere near there in the short term. Buying on the dips and collecting profit probably works best.

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