S&P 500 Forecast November 25, 2015, Technical Analysis

The S&P 500 initially fell during the day on Tuesday, but turned back around at the 2070 level as we continue to see buyers below. With this, the hammer of course suggests that we are going to continue going higher over the longer term, and with that we continue to buy this market on dips. We think that we will test the 2110 level, and then break above there to continue to go much higher. We like stock markets in general, especially considering that the US stock markets are all impulsive to the upside and with the strength that we have seen in the jobs market, it’s very likely that money will continue to flow towards America over the longer term.

The S&P 500 has risen quite a bit recently, and even with the pullback we are still very much in an uptrend. In fact, when you look at the longer-term charts, you can also make out a bit of a “W pattern”, which of course is one of the strongest patterns that you can see in a market as far as reversals are concerned.

The 2070 level is supportive on pullbacks, but then again so is the 2060, 2050 and most certainly the 2020 levels. Because of this, the market should continue to offer buying opportunities on short and long-term charts, given enough time we think that the buyers will take control again, and with the massive amount of announcements that are coming out today we could have a catalyst to go much higher. Some of the pullback will have undoubtedly been due to the fact that Thanksgiving is Thursday, so with Core Durable Goods and Unemployment Claims, it’s likely that we will have enough volatility in the market to make our move.

At this point in time, we have no interest whatsoever in selling, simply because there’s far too many of the aforementioned levels that could cause support. The volatility should continue but quite frankly we think that the longer-term uptrend should continue to be the case, and therefore we are trying to take advantage of value when we see it.