S&P 500 Forecast: Looks Higher
Date
11/20/2023 11:18:55 PM
(MENAFN- Daily Forex)
The S&P 500 market remains firmly in a bullish trend, making it highly probable that the prevailing upward trajectory will persist. In essence, this is a market that consistently seeks to chase performance, albeit with the looming specter of options expiration potentially injecting some volatility into the equation.
Forex Brokers We Recommend in Your Region 1
![brkr-logo]()
Read full review Get Started
It's worth noting that any substantial pullbacks observed have been met with a swift resurgence in trader interest, with market participants readily re-entering the fray as buyers. Furthermore, we find ourselves in a season where the much-anticipated "Santa Claus rally" could materialize. Wall Street, as ever, is a realm characterized by habitual patterns, and it possesses a remarkable knack for crafting narratives that encourage stock purchases under various conditions.
Even in the face of short-term pullbacks, these market dips should be viewed as opportunities to buy. Despite the extended bullish run, it's prudent to acknowledge the possibility of a sharp downward correction. Notably, Tuesday's candlestick garnered attention due to growing sentiment that the Federal Reserve is poised to halt its rate hikes, leading traders to perceive it as a lifeline from "Uncle Jerome."
A fresh breakout to new highs would undoubtedly trigger a pronounced "buy-and-hold" Fear of Missing Out (FOMO) frenzy of buying. However, the sustainability of such a move remains uncertain, at least for now. Consequently, a cautious approach is advisable, and unequivocally selling in this market appears impossible as the traders out there are presently chasing performance is Rising
It's imperative to recognize that this rally has been significantly influenced by short covering, and traders are currently grappling with how to navigate the evolving landscape. In light of the prevailing dynamics, it's prudent to prepare for heightened market volatility, rather than its diminishment. This reality is underscored by the fact that the S&P 500 is increasingly influenced by a select handful of stocks, effectively rendering it beholden to the same 7 or 8 stocks that dominate most portfolios.
In the end, the S&P 500's bullish momentum remains intact, with the potential for a "Santa Claus rally" on the horizon. Any retreats should be seen as buying opportunities, although the possibility of a sharp correction exists. Caution is advisable, as the market continues to be buoyed by short covering, and traders adapt to evolving conditions. It's essential to acknowledge the rising volatility in today's stock market, particularly given the influence of a handful of key stocks that have complete control over the S&P 500.
Ready to trade the S&P 500 Forex ? We've shortlisted the best Forex brokers for CFD trading in the industry for you.
MENAFN20112023000131011023ID1107460942
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.