S&P 500 Weekly Price Forecast – Stock Markets Find Support at 3600 Again

The S&P 500 has fallen quite a bit during the course of the week, testing the 3600 level only to turn around and show signs of strength. The candlestick is a hammer, which suggests that we continue to see plenty of buyers on dips. Given enough time, I think that the markets will eventually go looking towards the 3800 level, and then possibly the 4000 level. We had recently broken out of a 400 point range, and that should extrapolate to a move towards the 4000 level.

S&P 500 Video 28.12.20

All things being equal, this is a market that will be quiet over the next couple weeks, but I do believe that as we start the next year, we will see buyers jumping back into the market to push things higher. With stimulus coming that will also help the situation, and it should be noted that a lot of people believe that there will be even more stimulus next year. In other words, Wall Street will continue to party based upon that cheap and easy money. Even if we break down below the 3600 level, the market is likely to go looking towards the 3500 level next where it would be supported as well.

I have no interest in shorting this market, as it has been very strong for quite some time and as you know, the market is not equally weighted so yet to be very cautious about trying to short anyways due to the fact that there are only a handful of stocks that truly move the market, all of which are loved and owned by most of Wall Street.

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