S&P 500 Forecast July 19, 2017, Technical Analysis

The S&P 500 went sideways during most of the day but then fell on American trading as we reached down to the 2450 handle. The market looks very well supported there as it had been massively resistive. I think that the market will continue to find buyers in that area, and therefore short-term pullback should be buying opportunities. The 2500 level above is the longer-term target in general, so having said that I think that the market will continue to be a “buy on the dips” situation as the S&P 500 works its way through the earnings season. That causes volatility, and of course that could make it a very difficult and interesting move. I think that as long as we can stay above the 2450 handle, I believe that the market will continue to be one that you can buy.

Small positions, adding as I go.

I believe in adding small positions going forward, and then of course adding even more to the position as it works in my favor. The 2500 level will be massively resistive so we will probably have to pull back several times to build up the necessary momentum to continue going higher. Once we do, that is a very bullish sign, and I think it becomes more of a “buy-and-hold” situation. In the meantime, though, I think we are waiting for some type of stability so we can do that. I think that choppiness will continue to be a common theme in this market, but I certainly think that there is an upward bias.

S&P 500 Video 19.7.17