S&P 500 Price Forecast – Stock Markets Rally Significantly As Fear Abates

The S&P 500 shot much higher during the trading session on Tuesday, as traders have wiped out the losses from last week. Because of this, it looks as if the market is ready to go looking towards the 3350 level, and beyond. To the downside, the 50 day EMA has clearly offered a significant amount of support, and you can even make an argument for a bit of a trend line underneath keeping the market afloat. Central banks around the world continue with that loose monetary policy that markets love, and it seems like we are starting to focus on that again.

S&P 500 Video 05.02.20

To the upside I anticipate that the 3500 level will be targeted longer term, but that is a story for later in the year. Short-term dips should continue to offer buying opportunities as we clearly have a lot of bullish pressure underneath and a desire to buy assets. Furthermore, you can also make a bit of an argument for money flowing into the United States as a way to get away from Asia, and of course the European Union which continues to stagnate in general. In other words, the S&P 500 should continue to cause a lot of buying pressure due to monetary flow, and of course the loose monetary policy. It’s essentially the “one-two punch” that have been driving the market for so long. I don’t have any interest in shorting, and believe that as long as the market can stay above the 3100 level, there will always be a certain amount of value hunting going on.

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