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S&P 500 Weekly Price Forecast – Stock Markets Pullback to Recent Break Out

Christopher Lewis

The S&P 500 has rallied a bit to reach towards the 3600 level before getting absently hammered on Thursday and Friday. At this point in time, the market looks as if it is trying to find its footing, and I think that it is only a matter of time before we do find those buyers. At this point, I think that there is massive support between here and the 3200 level, which I think is the short term bottom. However, it is also possible that we go sideways in the short term, as the market has seen a bit of an over exuberance when it comes to buying, and now it is likely that the market grind sideways to digest the gains, as we had come so far in such a short amount of time.

S&P 500 Video 07.09.20

Ultimately, I do think that the S&P 500 continues to react to the Federal Reserve and all of its efforts, so a pullback here is probably going to end up being a buying opportunity. Granted, I recognize that the stock markets are completely divorced from reality, but that has been the case for 12 years so I do not see how this should suddenly change now. With this, liquidity continues to force money into the market, but ultimately it is difficult to short in that scenario, despite the fact that any person can see that we are overdone. I think it nice pullback from here makes sense but it should be noted that the 3400 level is showing itself as resilient as well.

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

This article was originally posted on FX Empire

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