S&P 500 Weekly Price Forecast – Stock Markets Hit Top of Range

The S&P 500 rallied significantly during the course of the week, reaching towards the top of the range that we have been in, near the 3500 level. Above here, the market need something to celebrate in order to continue going higher. At this point, I think we are a little overdone so do not be surprised at all to see the stock market take a bit of a breather. That being said, if we were to break above the 3600 level, that opens up the possibility of a move to the 4000 level, based upon the measured move of 400 points.

S&P 500 Video 09.11.20

There is a lot of noise out there just waiting to happen, so I think we continue to struggle, not only due to the fact that we are not necessarily sure about the election, but also what happens next. The stimulus will be lower than once thought, so I suspect that stock traders will have to measure that as well. Furthermore, the jobs number with much stronger than anticipated, and that might have stimulus on the back burner. Nonetheless, let us be realistic here: The S&P 500 always finds a reason to go higher because Wall Street will come up with some type of narrative that they can get excited about. Ultimately, buying dips continues to work longer term, as the US dollar probably continues to drift lower, and stimulus around the world will continue to have people excited one way or the other. However, do not be surprised at all to see a couple of soft sessions.

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