S&P 500 Price Forecast August 7, 2017, Technical Analysis

The S&P 500 initially rally during the day on Friday, testing the 2475 region. We pulled back a bit after the jobs number, because the US dollar did strengthen and traders typically use that as a counterbalance to stocks. However, later in the day we are starting to strengthen again, and I believe that the S&P 500 will continue to be a “buy on the dips” situation. The market looks likely to try to reach the 2500 level above, but as you can see we are currently consolidating more than anything else. Because of this, I think it’s probably best to buy dips and take short-term profits. If we can break above the 2500 level, the market should continue to go much higher. I don’t have any interest in selling, because I believe that the 2450 level will be the “floor” of the recent consolidation area, so therefore I believe that we will continue to see buyers jump into the market.

Longer-term trend

I believe that the longer-term trend is to the upside, and therefore we continue to see buyers enter the market every time there’s value, and I think that’s what you need to look at in this market: value. Pullbacks are value, and selling is all but impossible as the buyers have continued to jump into the market. Selling is all but impossible until we break down below the bottom of the consolidation area, and that being the case it’s likely that this will be a “one-way trade”, but in short bursts more than anything else.

S&P 500 Video 07.8.17