S&P 500 Price Forecast – Stock Markets Break Out on Hope of Stimulus
The S&P 500 rebounded somewhat during Thursday's trading session, surpassing the 3425 level, an area that has offered some resistance lately. We are essentially forming the end of the "V-Bottom" and that is of course a very bullish sign. At this point, it is likely that traders will keep buying the market based on the idea that people will celebrate the idea of cheaper money. At this point a stimulus is taken for granted, but the big potential kink in the armor will of course be the idea that no stimulus is occurring, which could likely send this market straight down. All one has to do is see how the market reacted to Donald Trump, which suggests negotiations have ended to understand this as we sold hard a few days ago.
S & P 500 Video 09.10.20
When all things are the same, even though we are getting conflicting headlines and the elections are so close it is a bit difficult to do much, the markets are betting on the idea of a short-term and smaller version of incentives. The momentum is certain to be positive, however, and it looks like we're trying to get back towards supply near the 3580 handle which was the high. If we reverse a break below the 50-day EMA, it could take this market to the 3200 level. At this point, it looks like the path of least resistance is still higher regardless of the headline noise.
In our economic calendar you will find all economic events of today.
This article was originally published on FX Empire
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