S&P 500 Weekly Price Forecast – S&P 500 Continues to Show ExhaustionThe S&P 500 has gone back and forth during the week as we continue to worry about stimulus and whether or not that cheap money is going to come.
The S&P 500 has had a choppy week as we did the previous week, and as we approach the election, it is likely that we will continue to see more of the same. That being said, I think overall we are trading between 3500 and 3300, and at this point may need to digest some of the gains in order to continue a move higher. I believe at this point we are looking at a scenario where we need some type of confidence to be built into the marketplace. That typically suggests that we are going to see more bearish pressure than bullish, but that does not necessarily mean that we are going to break down. Quite frankly, the market is probably just a bit jittery more than anything else.
S&P 500 Video 26.10.20
To the downside, the uptrend line of course could come into play and at this point could offer a bit of support. At this point in time, the market is likely going to see a lot in the way of volatility, so buying and holding is going to be difficult in this scenario. I think buying the dips could offer a nice opportunity, but you would need to do so with small bits and pieces. Quite frankly, it is essentially a bit of a gamble at this point so there is really not much point in the way of putting money to work until we get past the election noise. Because of this, unless you are a short-term trader there is not much to do as the S&P 500, although bullish, has a lot of risk built in currently.
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