S&P 500 Index Price Forecast November 1, 2017, Technical Analysis

The S&P 500 rallied a bit during the day on Tuesday, reaching towards the 2575 handle, before pulling back to the 2570 handle, and then rallied again. It’s a bit sloppy, but I have a bullish flag on the hourly chart. If we can break out above the 2580 handle, I think the market will then go towards the 2600 level. Ultimately, pullbacks continue to be buying opportunities, as we are in a longer-term uptrend. We are in the middle of her earnings season though, so it’s likely that the volatility will increase, not decrease. Given enough time, I think we not only reach the 2600 level but breakout above there and continue to go much higher. The 2550 level underneath should continue to be supportive, as the longer-term trend looks very much intact.

S&P 500 Video 01.11.17

The marketplace should continue to be one that’s difficult to deal with, but I think that the general attitude should be to the upside. Ultimately, the S&P 500 is going to continue to go to the upside, but we are going to struggle a bit occasionally, but look at those as buying opportunities, and do so in small increments as it gives you the ability to ride out massive amounts of volatility. Adding to your position as it works out is probably the safest way to trade this market unless of course you are involved in the options market. I have been selling puts recently and doing quite well added. This gives you the ability to benefit from an upside move with a limited risk if you also keep a stop loss in place. Buying calls also can work, but it is a little bit more difficult to make money in that sense, as a sudden turnaround can make your position worthless. CFD markets also work, as it gives you the ability to keep your position small.