S&P 500 Price Forecast – Stocks Continue to Wait for Fed and Stimulus

The S&P 500 went back and forth during the trading session on Wednesday as we await the stimulus talks and of course the Federal Reserve announcement. All things being equal, the 3600 level underneath should be supported, and a lot of traders will look at any dip as an opportunity to pick up value in the so-called “Santa Claus rally”, as this time a year typically sees a lot of buying pressure anyway. All things being equal, this is a market that I think is going to go looking towards the 3700 level, and then the 3800 level.

S&P 500 Video 17.12.20

We had recently been consolidating in a 400 point range, between the 3200 and the 3600 levels. The measured move suggests that we are going to go to the 4000 level and of course Wall Street and traders in general like the idea of large, round, psychologically significant figures, so with that being the case I think it is only a matter of time before we see some type of turnaround, probably a bit of resistance at that level. The 50 day EMA underneath is at the 3550 handle, reaching towards the crucial 3600 level. With that being the case, I think it is only a matter of time before we see buyers jumping in to pick up a little bit of value, and therefore I look at any pullback like that as an opportunity and what is a never ending rally.

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