S&P 500 Weekly Price Forecast – Stock Markets Pull Back

The S&P 500 pulled back for the week after initially trying to go higher due to the fact that we are still waiting to see whether or not there is going to be some type of stimulus package. Ultimately, there are almost certainly will, but the question is more or less whether or not we are going to see a large or small stimulus bill. At this point, it looks like we are struggling to come to some type of consensus in the Congress, and therefore it is difficult to continue to see any type of momentum in the markets continue. Furthermore, it makes quite a bit of sense that we would start to sell off heading towards the weekend. After all, who wants to be exposed to significant risk on the possible gap that comes Monday morning?

S&P 500 Video 14.12.20

Unfortunately, this is a market that is going to move based on the whims and comments of politicians, meaning that it is hard to tell where we go next, but eventually we should see plenty of buyers coming into pick up value. This is a market that I think given enough time we will go looking towards the 4000 level but that is probably more or less going to be a scenario where people are looking at that level next year. In the short term, we may need to pullback in order to find value, and of course confidence in the idea of stimulus coming out. The question is whether or not it is going to be big enough to get Wall Street excited at this point. Regardless, I have no interest in shorting this market anytime soon.

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