S&P 500 Price Forecast – Stock Markets Choppy Heading Into Next Year

The S&P 500 has tried to rally a bit during the trading session on Tuesday but gave back early gains as we simply are killing time between now and New Year’s Day, which of course means that the volume in liquidity would be thin. That being said, we are very much in an uptrend, so I look at any pullback at this point in time as an opportunity to pick up value. This will certainly be true as stimulus has been signed and more stimulus is likely to be in the future for America as well.

S&P 500 Video 30.12.20

To the downside, the 3600 level is massive support, and also features the 50 day EMA which is a technical indicator that a lot of people will pay attention to. With that being said, I think that longer-term value hunters will continue to be attracted to the S&P 500 as a way to preserve wealth as fiat currencies are losing value. Furthermore, any fear of inflation will drive more money into the stock markets, in order to keep up with it. When I look at this chart, it is obvious that we continue to find buyers regardless of what happens, so it is difficult to get overly excited about any pullback.

At this point, if you look at the previous consolidation area, it was from 3200 on the bottom to the 3600 level on the top. This measures for a 400 point move, which extrapolated from the 3600 level gives me a target of 4000. I do believe that we reach that level at one point or another next year, probably in the spring.

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