S&P 500 Weekly Price Forecast – Stock Market Wipes Out Omicron Losses

The S&P 500 has rallied rather significantly during the course of the trading week to reach towards the 4700 level. The 4700 level of course is an area where we have seen a lot of resistance, and the all-time highs at the 4740 handle that the market is now paying the most attention to. If we can break above there, then it is likely that this market could continue to go towards the 5000 handle.

S&P 500 Video 13.12.21

Keep in mind that the “Santa Claus rally” will continue to be one of the major drivers of where we go next, due to the fact that a lot of traders out there will be looking towards the benchmarks and trying to catch them for clients. In other words, they will be buying every dip that appears. The market will continue to be very noisy, but I believe that eventually we will see follow-through as we are in an uptrend and the Federal Reserve is so open about its tapering decisions.

To the downside, the 4500 level should continue to offer plenty of support, as well as the potential trend line that has formed right around the same area. This has been a perfect 45° uptrend, and that is exactly what markets like. Yes, it will go back and forth occasionally, but at the end of the day, this is a market that continues to rally. Because of this, I think what we are looking at is a scenario where you continue to buy dips, assuming that we do not just simply rip through the top next week, which would not surprise me at all.

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