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S&P 500 Price Forecast – Stock Markets Stabilize on Thursday

By:
Christopher Lewis
Published: Nov 11, 2021, 16:53 UTC

The S&P 500 has gone back and forth during the trading session on Thursday, but perhaps more importantly than anything else, we have sat still.

S&P 500 Price Forecast – Stock Markets Stabilize on Thursday

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The S&P 500 has sat still during the trading session on Thursday, which of course is a very bullish sign. At this point in time, the 50 day EMA is sitting just above the $4500 level, which is a large, round, psychologically significant figure, and it is also worth noting that the moving average is currently going slightly higher. All things been equal, the market is likely to continue to see buyers on dips, which despite the fact that we had such a negative day on Wednesday, we are still very much in an uptrend. Quite frankly, markets cannot go straight up in the air forever, so any pullback should be thought of as a potential buying opportunity.

S&P 500 Video 12.11.21

Speaking of finding value on pullbacks, the reality is that a lot of fund managers are looking to make a significant amount of returns between now and the end of the year in order to give their clients good news. This is what causes the “Santa Claus rally” that is a known phenomenon. At this point in time, I think a lot of traders out there are trying to make up money for their clients and therefore in a year that the S&P 500 has performed so well, there should be a flood of money coming into the market.

One thing that is causing a little bit of a headwind right now is a strengthening US dollar, but that is not necessarily something that we need to fear or that we can guarantee the correlation. That being said, we are most certainly in a very bullish run and I do not plan on shorting this market anytime soon.

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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