S&P 500 Weekly Price Forecast – Stock Markets Continue To Reach HigherThe stock market’s rally during the week after initially pulling back towards the 3150 handle. We broke above the 3250 level, and even attacked the 3200 level before rolling over.
The S&P 500 has initially pulled back during the week, but then turned around to show signs of strength again as tensions cooled off between the Americans and the Iranians. All things being equal, this is a market that has been in a major uptrend, and likely at this point we will continue to go higher. That being said, the Friday candlestick was a little lackluster after a less than impressive jobs number, so we may get a short-term pullback. That pullback should be thought of as a nice buying opportunity, especially near the 3200 level. On the daily chart, the 50 day EMA is starting to reach towards that area as well.
S&P 500 Video 13.01.20
If we can break out to the upside and above the 3300 level, then I think that the S&P 500 will go looking towards the 3500 level. It won’t be easy, but ultimately that is going to be our destination over the longer term. Shorting this market isn’t an opportunity that I see anytime soon, at least not until we break down below the 3000 handle, which would be a significant break down from this point. Granted, we may be a bit overextended, but I look at pullbacks at this point as a buying opportunity and it’s clear that the rest of the market participants to as well. That being said, simply looking for value is the best way to trade this market, and now the traders are coming back from the holidays, volumes will start to pick up again, especially now that the jobs number is out of the way.
Please let us know what you think in the comments below