S&P 500 Price Forecast – Stock Markets Continue To Power Higher
The S&P 500 rallied significantly during the trading session on Tuesday, breaking out and above the 3350 level. The market is at an all-time high, and it shows no signs of giving back these gains. I would love to see some type of pullback in order to pick up a bit of value, and that’s how pullback should be looked at. The 50 day EMA is walking right along with the uptrend line, so that is at least two reasons to think that this market will find buyers underneath. Furthermore, unless something fundamentally changes is difficult to imagine that the stock market falls apart.
S&P 500 Video 12.02.20
Think about the following: coronavirus, trade wars, global demand slowing down, and a rising US dollar. Those are all things that had I told you were going to be part of the economic outlook at one time, you would be willing to bet against the stock market. Having said that, here we are. That being the case it’s very likely that we are simply trading on one thing and one thing only: that would be the Federal Reserve keeping monetary policy loose. If that’s going to be the case, stocks are going to continue to rise because that’s the only thing Wall Street truly cares about over the longer term.
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That being said, I would love to see a pullback towards the 3300 level, or again, that trendline. Either way, I look at pullbacks as value propositions and they have in fact been for several years. Selling is all but impossible at this point.
Please let us know what you think in the comments below