The E-mini S&P 500 spiked in October before moving down and then up again by the beginning of November. Analysts say it could be headed for a rally into the holiday season.
“The stock market will pull back to somewhere around the 1050 level and we’ll see the market rally into Christmas,” says Larry Levin, president of Secrets of Traders. “The economy is in a lot more trouble than most people are willing to admit right now. The stock market will continue to move higher on poor economic news through the end of the year.”
Richard Roscelli, a broker at Whitehall Investment Management, says the market is stuck in a range. “It’s going to [have to] break 1103 for us to have any chance of heading [further] to the upside.” He expects the market to top out at 1140 and then fall sharply. “The higher we go, the further we’re going to fall come mid-January, if the market ends up showing any signs of rationality.” He expects the S&P to reach 1140 by year end. He adds, “If we fail to break 1103, we’re going to pull back to about 1062.” Roscelli sees 1022 as the next key support level.
Levin expects the market to trend higher and consolidate higher above the 1100 level in the E-mini S&P by January.