S&P 500 Weekly Price Forecast – Stock Markets Continue To Power Higher

The S&P 500 rallied slightly during the week, reaching towards all-time highs again. At this point, the market is very likely to see pullbacks as a buying opportunity, especially now that we have had the “phase 1 deal” agreed-upon by the Americans and the Chinese.
Christopher Lewis
S&P 500 Weekly Price Forecast - Stock Markets Continue To Power Higher
Hong Kong display stock market charts

The S&P 500 has rallied a bit during the trading week, making a fresh, new high yet again. At this point, the market is very likely to continue to go to the upside, perhaps even the 3200, maybe even the 3250 level based upon the ascending triangle underneath. The hammer from the previous week is of course very bullish, so that’s another reason to think that we will eventually go much higher. At this point, short-term pullbacks continue to offer plenty of buying opportunity as we are at the end of the year, and the so-called “Santa Claus rally” should come into effect. This is where money managers pad their returns for the previous year to show their clients, meaning the must jump into the market to start buying.

S&P 500 Video 16.12.19

Ultimately, I believe that the 3000 level is essentially the “floor” in the market, so as long as we can stay above there it’s more of the “buy on the dips” type of variety when it comes to this market. I don’t have any interest in shorting this market, because quite frankly the Federal Reserve is on the sidelines and out of the way of the markets. The market has been relentless in its move higher with the exception of a couple of sharp pullbacks, so at this point it’s difficult to imagine a scenario why you would wish to fight the overall momentum which seems to be rather strong. That being said, look at pullbacks as potential value opportunities.

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