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S&P 500 Price Forecast – S&P markets grind higher

Christopher Lewis

Stock markets have rallied a bit during the trading session on Friday, reaching yet another all-time high. At this point, the market looks as if it is a little bit overextended, but quite frankly any pullback at this point will more than likely find buyers. I would be especially keen to pick up a bit at the 3300 level, and most certainly at the 3200 level underneath which I think is a short-term floor in the market. The 3200 level also has the 50 day EMA approaching it, so it’s likely that will cause support as well.

S&P 500 Video 20.01.20

If we were to break down below that level, it would be very negative obviously, but at the end of the day I think it’s very unlikely to happen in this type of environment. The market breaking down below there probably opens up the door to the 3000 handle, or maybe the 200 day EMA which is slightly above there. Breaking below that level gives up the entire uptrend, and I don’t see that happening anytime soon. The market continues to get reasonable earnings reports, which this time of year tends to be the main focus, but we also have the Federal Reserve out there willing to lift the market as well. As long as interest rates are this low, there really isn’t anywhere else to put your money for most American institutions, so it’s a self-fulfilling prophecy. If the US dollar can lose a bit of value that could help with exports, which would be the last missing piece for, yet another melt up.

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This article was originally posted on FX Empire

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