S&P 500 Forecast May 17, 2017, Technical Analysis

The S&P 500 has been very choppy during the session on Tuesday, as we continue to hover around the 2400 level. Ultimately, I believe that the market will eventually go to the upside, but as you can see we had a gap just above that has now acted as a bit of resistance. If we can clear the 2407 level, the market should continue to go much higher. I think that’s what’s going to happen, but it may take a bit of momentum building in the meantime to do so. I recognize that this is a market that has been bullish of the longer-term, and I believe that there is no real way to short this market, least not in the short term. We could have a breakdown and start selling, but we are a long way from doing as such.

Earnings season

We’ve gotten through earnings season relatively unscathed, and that normally means good things for the stock market longer term. I believe that we are going to eventually break out to the upside and go looking for the 2500 level above. That is a large, round, psychologically important number, and because of this I think the market will try to test that level as it typically will do with these milestones. Short-term pullbacks offer buying opportunities, and I believe that will continue to be the case. It might be choppy, but still has an upward bias, so being patient and waiting for value and support will be the best way to trade this market. CFD markets are preferable, because futures contracts of course get a bit expensive it times. Options and ETF’s are also a possibility, but either way it has a bullish flavor to it, and I certainly am not willing to fight that anytime soon.

S&P 500 Video 17.5.17