S&P 500 Price Forecast – Stocks Markets Continue to Press Top of Range

The S&P 500 has rallied a bit during the trading session on Friday, but still is going to struggle with the 3600 level. The Monday candlestick was a massive spike higher based upon the news that Pfizer had a vaccine with a 90% efficacy against the coronavirus but notice how we gave back plenty of the range for the day as we did not have the momentum to go higher. At this point, the Friday candlestick is bullish, but it looks like we are running out of momentum in general and it still suggests that we could be forming some type of “rounding top.”

S&P 500 Video 16.11.20

To the downside, the 3400 level will be an area where people could be taking a look at due to the fact that it is a large, round, psychologically significant figure, and of course the 50 day EMA is sitting there as well. With all this being said I do believe that the market eventually goes higher, but we need to see some type of value in order to find a decent trade. At this point in time, the market is likely to see plenty of buyers underneath as we are still very much in an uptrend, with both the 50 day and the 200 day EMA indicators offering very interesting confluence when it comes to the technical analysis and support levels underneath.

If we broke above the candlestick from the Monday session, then it is likely that we could go to the 3800 level, but I think we need quite a bit of momentum building to do that. Quite frankly, we need some type of “good news.”

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