S&P 500 Index Price Forecast November 29, 2017, Technical Analysis

The S&P 500 initially went sideways during the trading session on Tuesday, but then broke above the 2605 level, to break towards the 2016 handle. This market is a little overbought at this point, so for short-term pullbacks offer buying opportunities to take advantage of the break out. I look at the 2600 level underneath as the short-term floor in the market, and I think that we will continue to go much higher. With this being the case, it’s likely that the market will probably go to the 2650 level after that, and possibly beyond. Pullbacks should offer value at best, but if we were to turn around and break below the 2590 handle, the market could find itself selling off a little bit more significantly. I think the selloff is probably needed, but it is obvious that the market cannot sustain any bearish pressure, so in the meantime buying on the dips probably remains the only thing you can do.

I recognize that the 2625 level is going to be a target as well, as it has a certain amount of psychological importance. The S&P 500 has gone sideways for a couple of days, so I think that the momentum could stick with this market to the upside for the next couple of days, but eventually we will need to pull back as the market has been overbought for so long. If the US dollar starts to strengthen, you could see this market pull back in general, but I don’t think it would be a longer-term issue, rather than a short pull back. Ultimately, I think that the algorithmic traders continue to lift the S&P 500 every time we fall anywhere near 1%. It looks like the machine-driven buying continues.

S&P 500 Video 29.11.17