S&P 500 Weekly Price Forecast – Stock Markets Choppy Ahead of Holidays

The S&P 500 has gone back and forth during the course of the week, forming a somewhat indecisive candlestick. By doing so, it does suggest that there is support just below though, and that is probably the most important take away. The 3600 level continues to be an area that people pay attention to and as we head into the Christmas and New Year’s Day holidays, liquidity is going to be a major issue. I think we probably just go sideways over the next couple of trading sessions, but starting next year, I would anticipate that more buyers come back into the market due to stimulus and of course the fact that the beginning of year is typically one fund managers put money to work.

S&P 500 Video 21.12.20

That being said, even if we break down below the 3600 level, I think there is plenty of support near the 3500 level and even as low as the 3200 level to keep going. With that in mind, I have no interest in shorting this market and I look at pullbacks as potential buying opportunities as they have always been. We had recently broke above the top of a major bullish flag, and at this point I still have a target of 4000 but I think it is can it take some time to get there. The next couple of weeks will certainly be choppy and difficult to trade so I think if you are already long of the market, there is not much for you to do at this point. If you are flat, you are probably better off waiting on a slight pullback.

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