S&P 500 Weekly Price Forecast – Look Ready to Make the Next Move

The S&P 500 has initially pulled back towards the 3600 level, an area that previously had offered quite a bit of resistance. Now that we have pulled back to that area and showing it to be supportive, it does in fact suggest that we are going to go higher. Looking at the charts, we have obviously broken out of a 400 point range that suggests that we are going to go looking towards the 4000 handle. I think that it is probably going to be indicative of so-called “Santa Claus rally” that Wall Street tends to have at the end of the year. At this point, any signs of weakness I am willing to jump in and start buying.

S&P 500 Video 07.12.20

The US dollar has been falling as well, and that of course helps the idea of making stocks a little bit better performers as well. However, one thing that could come into play is the fact that the 10 year note is starting to get close to a 1% yield, and that could cause a certain amount of pullback in stocks due to algorithmic trading. Ultimately though, I do not think that the pullback would be something that long term, but it could cause a bit of a short-term shock. Look at that chunk as a potential buying opportunity. Now that Steve Mnuchin and Nancy Pelosi are talking about stimulus again, the market is trying to press higher due to that as well.

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