S&P 500 Weekly Price Forecast – Stock Market Continues to Melt Up

S&P 500 Weekly Forecast Video for 20.11.23

S&P 500 Weekly Technical Analysis

The S&P 500 has rallied rather significantly during the course of the trading week, breaking well above the 4500 level in the futures market early on Friday, and suggesting that we are going to go higher. At this point, short-term pullbacks are buying opportunities as the market will continue to attract inflows and it’s likely that we are going to continue to rally into the end of the year. After all, Wall Street has the idea that the “Santa Claus rally” is about to kick off, so a lot of traders are jumping in the market to front run that move.

That doesn’t necessarily mean that we are in the all clear, but over the next couple of weeks, I anticipate that the market will continue to favor a “buy on the dip” strategy, as the market will almost certainly find some type of reason to start buying, as that is Wall Street’s job, to sell you stock.

Underneath, I think the 4400 level is going to be an area of potential support, and of course the previous downtrend line from the channel should also have a bit of “market memory” attached to it as well. The size of the candlestick for the week is somewhat impressive, and it does suggest that momentum has entered the market again. If we can break out above to reach a fresh, new high, then we are probably going to continue to go much higher between now and New Year’s Day. Once we get to the start of the new year, things could change, but right now it looks like the “full momentum” is here and is going to continue to drive the market as most people on Wall Street believe that the Federal Reserve is done tightening, and thereby cheap money is here again.

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