S&P 500 Price Forecast – Stock Markets Rally Into Election

The S&P 500 shot higher during the trading session on Tuesday, reaching above the 50 day EMA. That being said, the market is likely to continue to see a lot of noise, and therefore think it is only a matter of time before we see volatility in both directions. The 3450 level is also resistance, so at this point in time I think there is still a certain amount of downward momentum that could come into play. All things being equal, I think the only thing that really matters is what the election says and with the makeup of the US government is. Perhaps more importantly is the idea that the results are somewhat quickly resolved.

S&P 500 Video 04.11.20

At this point, we still have a massive amount of support near the 3200 level, so I think that the market will more than likely find buyers in that area. To the upside, I believe that the 3550 level is going to be major resistance, although if we finally get past all of this it is very likely that Wall Street will celebrate the massive amounts of stimulus coming by going long of the stock markets as they typically do.

With this being the case, I think it makes quite a bit of sense that the market still favor the upside and that short-term pullbacks are probably the best way to get involved in this market for retail traders, because quite frankly over the longer term it is exactly what typically happens, we dip and then we continue to go higher. The US dollar gets hammered, that will also help this market as well.

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