NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Quiet Day After Thanksgiving

S&P 500 Technical Analysis

The S&P 500 continues to just meander around the $6,000 level. This is an area that’s been important a couple of times now, and of course is a large round, psychologically significant figure, so a lot of people would be paying close attention to it. With that being said, short-term pullbacks, I think, end up being buying opportunities, all the way down to at least the 50-day EMA, which is close to the $5,825 level. Short-term pullbacks are just as likely as a breakout. So, at this point, at least in the short term, you have to be somewhat neutral.

In the longer term scheme of things, though, this is a market that certainly looks like it could rip much higher over the next several months. And of course, we also have the so-called Santa Claus trade, which is when money managers in the month of December try to make up for underperformance by purchasing high-flying stocks, which tends to have a somewhat self-fulfilling prophecy with the index itself going higher.