S&P 500 Weekly Price Forecast – Stock Markets Run Out of Steam

The S&P 500 broke above the 3600 level, spiking after the news of a potential virus vaccine break through. The 90% efficacy of the Pfizer vaccine does suggest that perhaps there might be help down the road, but right now it is far too early to get that excited about it. With this candle does tell me is that we are not quite ready to take off to the upside, and it looks like we are essentially still stuck in the range between 3200 on the bottom and 3600 on the top. That being said, I do think that eventually we will find buyers on some type of pullback that offers value. Ultimately, this is a market that I think gives you plenty of opportunities on dips. The 50 week EMA underneath at the 3200 level should continue to see interest as well, as it offers at least two reasons to go long.

S&P 500 Video 16.11.20

All things being equal, this is a market that I think offers value on dips and obviously Wall Street is simply waiting for some type of handout in order to go higher. That is what we have been doing for 12 years, and I do not see that changing this week. This is not to say we cannot pull back or fall from here, I certainly would expect it. However, as we are looking at the possibility of lockdowns again, that makes quite a bit of sense that the a lot of volatility. All things being equal, the market will eventually find some type of narrative to hang onto to start buying again.

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