Yahoo Finance S&P 500 Weekly Price Forecast – Stocks Continue to Press All-Time Highs
The S&P 500 had a strong week, breaking above the 3600 level. At this point in time, the market is testing the highs again, and it looks like we are trying to get to the upside for a bigger move. Short-term pullbacks will probably attract attention again so that traders can get involved and start going long. If we do break above the candlestick from a couple of weeks ago to make a fresh, new high, then the S&P 500 is likely to go looking towards the 4000 handle. This is based upon the measured move from the previous rectangle that we are trying to break out of.
S&P 500 Video 30.11.20
That being said, it should be noted that it was Thanksgiving week, so obviously liquidity and volume may have been a bit of an issue. Nonetheless, it looks like we are going to try to get that “Santa Claus rally” that we get every year, so I would anticipate that another leg of buying is more likely than not. Short-term pullbacks from here should be a buying opportunity as this market is obviously very bullish and there is no point in trying to fight the overall trend. At this point, I think that we continue to look for dips as potential buying opportunities or take advantage of breakouts.
Ultimately, I believe that the 4000 level will be very difficult to break out above though, because it is such a psychologically important figure. I also do not think that the market is going to go straight up in the air, so I would not anticipate that it is necessarily always going to be easy but clearly the most prominent direction is higher.
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This article was originally posted on FX Empire
