S&P 500 Forecast July 21, 2017, Technical Analysis

The S&P 500 went sideways during the day, showing signs of exhaustion during the early hours. However, the market fell significantly as the announcements heard that the investigation into Donald Trump has spread towards his global companies. This isn’t much of a surprise, and this could have been more algorithmic trading based upon news than anything else. Every time there is a headline like this crossing the wires, it turns out to be a nice buying opportunity and that of course was no different during the day on Thursday. You can see that the 50-hour exponential moving average has offered support, and I believe that the market should continue to go higher, perhaps reaching towards the 2500 level. I believe pullbacks offer value, especially when they are the “react first, think later” variety.

Buying dips

The only thing you can do in this market is buy dips, as it is very bullish. Ultimately, the 2450 level below is very supportive and essentially the “floor” in the market. I think if we can break above the 2500 level, the market and becomes more of a “buy-and-hold” situation. The S&P 500 of course is a bit extended, but quite frankly it is a market that remains very bullish. I believe that traders will continue to look to this market for buying opportunities as stocks are going through earnings season, and that of course can be a boon of opportunity as the volatility will pick up.

S&P 500 Video 21.7.17