S&P 500 Weekly Price Forecast – The S&P 500 Has Rallied to Close Out the Year

The S&P 500 has rallied a bit during the course of the week to break well above the 4750 handle, as we have continued the longer-term uptrend that has been so reliable. Now that we are closing out the week, the reality is we will more than likely see a little bit of a pullback, but I think that will be bought into as people start to put money to work for next year. Now that we have had everybody be able to present gains for the year to their clients, they will have to put money back to work for next year. There is nothing on this chart that suggests that we are going to see other behavior than that.

S&P 500 Video 03.01.22

There is a nice uptrend line underneath that has been very reliable for quite some time, going back towards the fall of 2020. I believe we will eventually see 5000, perhaps sometime in March or April, but clearly the same game has been played for quite some time, meaning that we will continue to find plenty of value hunters and momentum chasers every time we get an opportunity to find a little bit of value. The 4500 level right now looks to be the floor in the market, so as long as we can stay above there we should be in relatively good shape. The overall attitude of this market will continue to see a lot of value hunting, but as long as the Federal Reserve is going to keep monetary policy relatively easy, despite the fact that they are tapering a bit, there are plenty of people willing to put money to work here.

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