S&P 500 Index Price Forecast November 20, 2017, Technical Analysis

During quiet Friday trading, the S&P 500 hung about the 2580 handle, an area that has been important more than once. It’s obvious that if we can make a fresh, new high, the S&P 500 will probably go looking towards the 2600 level above, which should be rather resistive. The fact that we couldn’t go anywhere is not a huge surprise, I believe that most of the market participants are paying attention to the Congress in America and whether they can pass some type of tax bill. If we do get that, the market should continue to go higher, and eventually break out. In the meantime, we could pull back, perhaps reaching towards the 2550 handle underneath, which is longer-term support as well. Buying the dips continues to be the way forward, as the S&P 500 has been so strong, and of course, there is a certain amount of algorithmic trading coming along, and every time that we pull back its likely to attract more machines.

S&P 500 Video 20.11.17

Markets overall continue to be volatile, but that’s to be expected as we await political outcomes. In general, I prefer to buy dips, because we are at elevated levels, and that means it’s only a matter of time before we get some type of pullback. Best the nature markets, offering value eventually. I look at that as an opportunity to go long, and I believe that any time this market becomes “cheap”, you need to be there. However, being patient and waiting for pullbacks is one of the more difficult things to do, but I think that we will eventually get that opportunity. Even though the 2580 handle seems to be holding out, I suspect that waiting for lower pricing is going to pay off in the end.