S&P 500 Weekly Price Forecast – Stock Markets Pull Back Heading Into December
The S&P 500 has initially tried to rally during the course of the week but gave back the gains to show signs of weakness. All things being equal, this is a market that has been in an uptrend forever, and therefore I am looking at this as a potential buying opportunity on pullbacks. The obvious uptrend line is marked on the chart, so we could have further to go, but I think somewhere around 4500 is going to be a major support level. At this point, I do not have any interest in trying to get too cute with this market, so I am simply waiting for see some type of support of bounce to take advantage of.
S&P 500 Video 29.11.21
If we can break above the top of the candlestick during the trading week, then it opens up the possibility of going all the way to the 4800 level in the short term. We do have the so-called “Santa Claus rally” about to kick off when money managers try to do everything that they can to earn some type of gains in order to show profit to clients. This forces traders to buy every dip along the road, and it will be interesting to see how the market looks at this on Monday when more volume returns. If that is the case, we may have a massive turnaround during the day, but I would not be willing to call that as likely quite yet. If we break down below the bottom of the candlestick, then I think 4500 is a reasonable area look for a bounce. Longer-term, we are going higher, because even with the Federal Reserve tapering, liquidity is still a major factor.
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