S&P 500 Price Forecast – 3600 Gets Pierced Again

The S&P 500 has rallied during the trading session on Tuesday again, breaking above the 3600 level. This is an area that of course is a large, round, psychologically significant figure and of course an area that has also shown itself to be important in the past. With that being the case, I think it is very likely that we may struggle a bit to go higher. Granted, we are trading based upon the hope of the vaccine next year, but quite frankly I think that stories getting a little overplayed.

S&P 500 Video 25.11.20

For weeks now, we have been hearing about how the markets are looking through to the 2022 year, which is great and all but between now and then we have a lot of economic damage coming. With that in mind, it will be interesting to see how this plays out, especially as earnings and consumer sentiment numbers during the trading session were not exactly stellar. Yes, you can make an argument for looking beyond them, but how much longer can that still be the mantra? At this point, I believe that we are simply looking at a market that is stretched a bit and is trying to kill some time to decide whether or not it can go higher.

This is not to say that I am looking to sell the S&P 500, far from it. I believe that buying pullbacks will be the way going forward and would be especially keen to get involved if we could somehow get back down to the 50 day EMA, which unfortunately is 150 points below. In the meantime, I like pullbacks as short-term buying opportunities.

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