S&P 500 Price Forecast – Stock Markets Continue Relentless Drive Higher

The S&P 500 has rallied a bit during the trading session on Wednesday and therefore it is likely that we will continue to go looking towards the 3500 level above. I think short-term pullbacks continue to offer buying opportunities and what is an extraordinarily volatile market. Jerome Powell speaks during the day on Thursday and he will certainly do what he can to boost the stock market then as well.

S&P 500 Video 27.08.20

The candlestick from last week suggests that the 3400 level is going to be massive support, extending down to at least the 3350 level. In this environment, buying on the dips should continue to pay dividends, as this is a market that will certainly see a lot of momentum chasers, and of course with the US dollar losing strength it is obvious that the liquidity will continue to be rammed down the throat of these markets. Earnings season is just about over, and we have escaped it, and it now looks like we continue to go higher over the longer term.

If we were to break down below the 3350 level, then the 50 day EMA comes into the picture about 100 points and will attract a lot of attention. I have no interest in shorting this market, at least not yet and I believe that the “hard floor” in the market is closer to the 3200 level. It is not until we break down below there that I become concerned about the overall trend, and that looks increasingly unlikely as this momentum continues.

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