Weekly Briefing 11/29/20 - The Forecast

Weekly Briefing 11/29/20

Weekly Briefing 11/29/20

December’s top target should not exceed 3800 SPX. A sharp drop with recovery is indicated for December.  Our favored path as of today is a quick pullback starting Tuesday or Wednesday into the week of December 7th, followed by a rebound into the electoral college vote. We would then witness heavy year-end liquidation after the distribution phase is complete by banks into mid month. The liquidation can bleed into early January. Big picture – we are in a buy-the-dip market until May of 2021 with the SPX targeting well over 4100. The Nasdaq should hold up better during short term volatility with lockdowns benefiting tech stocks in particular. The SPX has  extreme support at 3200 on any quick sell-off. Bottom line, selling should be expected the first 10 days of December with a bounce following. We will dial in the level and strength of the bounce in our nightly briefings.
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