S&P 500 Price Forecast August 10, 2017, Technical Analysis

The S&P 500 gapped lower at the beginning of the session on Wednesday, but it looks as if we are trying to close that gap again. The 2460 level below continues to be massively supportive, and most certainly the 2450 level will be. The market looks likely to go looking towards the 2500 level over the longer term so these dips should be buying opportunities. I think that pullbacks offer plenty of value, as the algorithmic traders continue to go back and forth in what has been a very dull market. Unfortunately, volatility will pick up, and we don’t know which direction yet. However, there is the old expression “never short a quiet market”, mainly because the volatility tends to pick up to the upside driving prices higher.

North Korea

It seems as if the market is focusing on the Korean peninsula more than anything else, as the fear trade came into vogue late on Tuesday. The Wednesday session saw little bit more of the same, but it looks as if are trying to fight that major move. We are approaching vacation season, so it’s likely that the markets may continue to be more of a ho-hum type of situation going forward.

S&P 500 Video 10.8.17