S&P 500 Price Forecast – Stock Markets Reach Towards Highs Again

The S&P 500 has rallied a bit during the course of the trading session on Friday, as we continue to threaten the crucial 4700 level. The 4700 level has been important to pay attention to for quite some time, because quite frankly this is a market that will eventually chip away at this level, opening up for a bigger explosion to the upside. Whether or not it happens now is a completely different question, but as we head towards the end of the year the so-called “Santa Claus rally” continues to be a major factor.

S&P 500 Video 13.12.21

Dips at this point in time should continue to find plenty of support near the 50 day EMA, which currently sits just below the $4600 level. I have no interest in trying to short this market, and I look at any pullback as a nice buying opportunity. At this point, I think there will be plenty of momentum chasers coming back into this market at the first hint of being able to, and once we break the recent highs at the 4740 handle, it is very likely that we go looking towards the 4800 above.

If we were to break down below the 4500 level, I might just step out of the way and look to get involved early next year, due to the fact that liquidity could be an issue and therefore we could get a major selloff as people close out their books at the end of the year. At the beginning of the year, they have to put more risk on, so that is worth paying close attention to.

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