S&P 500 Price Forecast – Stock Markets Recover Slightly

The S&P 500 has rallied slightly during the trading session on Tuesday as we continue to talk about stimulus in the United States. This obviously would help the idea of markets rallying, because it would free even more capital into the markets, thereby having people look for places to grow financially. Ultimately, I think this is a market that remains “buy on the pullbacks” as the 3600 level should be support. The 50 day EMA is underneath and reaching towards that level as well, so that is another reason to think that perhaps traders will be paying attention to it. To the upside, the 3700 level has offered a significant amount of resistance and I think that would be your short-term target.

S&P 500 Video 16.12.20

Be aware that at the end of the week we have “quadruple witching”, which is when four different options markets expire, causing mass chaos. Because of this, I would be out of any positions at the beginning of Friday, but in the short term it looks very likely that we will find buyers on the dips. Longer-term, we can break above the 3700 level it is likely that the market goes looking towards the 3800 level above, perhaps even the 4000 level based upon the “measured move” from the previous consolidation area that we have just broken out of. Furthermore, we have the “Santa Claus rally” at the end of the year typically, and I do think that it is only a matter of time before that comes back into play. Pay attention to the US Dollar Index, and the Federal Reserve on Wednesday, they both could send this market higher.

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