S&P 500 Weekly Price Forecast – Stock Markets Break Out Yet Again

Jerome Powell did it, he spoke about the impossibility of raising rates anytime soon, and the raising of the bar for tightening monetary policy. Ultimately, this is a market that I think you can buy on dips, and I do believe that the 3400 level underneath should be massive support. Furthermore, I think the 3200 level should be massive support as well. So, looking at this market I think the idea of buying pullbacks continues to work, as the loose monetary policy will continue to push the trading community into assets, such as the stock market. Yes, I realize this has nothing to do with the economy, but the stock market has had nothing to do with the economy for at least 12 years.

S&P 500 Video 31.08.20

It is because the market moves in 200 point increments on the weekly chart that I am expecting a move towards the 3600 level. It is going to take some time to get there, but I do think we get there eventually. Look at pullbacks as potential buying opportunities and value, because we have clearly gotten a bit extended, but at this point in time it has should be obvious that we are going to continue the longer-term uptrend. I like the idea of picking up value as it occurs, and I would not be surprised at all to see a bit of a pullback soon. About the time everybody is panicking, you should be looking for an opportunity to go long yet again.

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