S&P 500 Forecast August 2, 2017, Technical Analysis

The S&P 500 initially rallied in the CFD markets during the day on Tuesday, but then turned around almost immediately as the Americans came back to work. We have seen this recently, that the Americans will sell off the stock markets, only to have the algorithmic traders coming later to pick up the pieces. We continue the uptrend channel, and it looks as if we are going to go looking towards the highs again, and I believe that were going to go looking towards the psychologically important 2500 level. I have no interest in shorting this market, and when we pull back I look at it is value that’s presented itself. Am a buyer of dips, and it has worked quite nicely over the last several sessions.

Quantitative easing

The Federal Reserve continues to be very soft when it comes to interest rates, and I think that will continue to pick up stock markets in America. I think that the 2500 level is far too juicy of a target for the market to forget, and therefore it’s only a matter of time before we try to break above it. If we do, that could lead to the next “buy-and-hold” opportunity. In the meantime, I like buying dips as stated above, and believe that there is a massive “floor” in the longer-term uptrend at the 2400 level below, which is nowhere near where we are now. I am bullish but also recognize there will be a lot of noise. Some of that noise may come today after the ADP Employment Change figures come out, as it tends to be a harbinger for the Nonfarm Payroll numbers on Friday. Nonetheless, I still believe that the longer-term trend remains positive overall, and that the buyers will be attracted to any type of weakness.

S&P 500 Video 02.8.17