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S&P 500 Price Forecast – Stock Markets Recover Slightly on Monday

By:
Christopher Lewis
Published: Nov 2, 2020, 17:03 UTC

The S&P 500 rallied a bit during the trading session on Monday, reaching towards the 3300 level early in the day.

S&P 500

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The S&P 500 has rallied a bit during the trading session on Monday, reaching towards the 3300 level. That is an area that we think should continue to see a lot of noisy trading, but we have to worry about the election obviously, and then of course we have to worry about the Federal Reserve and the jobs number on Friday. There is a whole host of issues out there that could cause it to be all over the place, so I would not read too much into this market other than the fact that it goes up over the longer term.

S&P 500 Video 03.11.20

To the downside, the 200 day EMA of course causes some psychological support which is just below the 3200 level. The 3200 level being broken to the downside could open up a move down to the 3000 level, but as I have told you in ad infinitum on my analysis at FX Empire, shorting an index in the United States is a very dangerous thing to do, because quite frankly it is so heavily weighted towards a handful of stocks that they do not typically go down for very long. Furthermore, you have Congress and the Federal Reserve willing to jump in and manipulate the market.

If the market falls, you buy the US dollar. However, if we continue to rally then you by the index itself. This is not to say they always go higher; it is just that over the longer term that is by far the safest and most statistically valid way to look at the market.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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