S&P 500 Price Forecast – Stock Markets Trying to Break Out
The S&P 500 rallied a bit during the trading session on Monday, breaking above the three 600 level before finding signs of trouble again. At this point, the market is likely to continue to see trouble and therefore I think signs of exhaustion will probably be sold into. However, if we can wipe out the massive shooting star from last Monday, that would be a sign that we are most certainly going higher over the longer term. At this point in time, the market should continue to see people will celebrate the vaccine, but we have rallied so much that it is difficult to imagine where we suddenly take off to the upside without some other catalyst.
S&P 500 Video 17.11.20
Looking at this chart, I would expect some type of pullback, but that pullback will be thought of more as a potential buying opportunity than anything else, as the market is clearly in an uptrend but is just a bit overextended. Ultimately, I think that this is a market that is going to go parabolic eventually even worse than it is now, because the morons are lining up. Having said that, at the same time we have the real economy locking down so it will be interesting to see how this plays out. I think volatility is here to stay, and therefore you will have to be very cautious and wait for some type of deep correction so that you can pick up some value. As far as chasing it appear, I have no interest whatsoever in trying to do so, because that is a great way to lose.
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