S&P 500 Price Forecast – buyers continue to return

The S&P 500 initially went flat during early trading electronically, but as the markets opened, the S&P 500 found plenty of buyers and it looks like although Facebook took an absolute pounding overnight, stock markets in the United States are willing to look past that and continue to go higher. I believe that the market will continue to attract a lot of money from overseas, as the US economy is the better performing major one available.

The S&P 500 of course is the best representation of how the markets feel about the United States, beyond the US dollar. I think that the market will probably go looking towards the 2850 level next, perhaps then to the 2880 level which was the absolute highest recently. I think pullbacks offer value the people are more than willing to take advantage of, and I also believe that the 2800 level underneath is a bit of a “floor” in the market. If we were to break down below that level, I think that the bottom of that zone is somewhere near the 2790 handle. Below there, the market probably comes unraveled for the most part.

Overall though, I do believe that the 50 EMA on the hourly chart continues offer dynamic support and guidance for trend trading. I believe that S&P 500 traders are going to go looking towards the 3000 by the end of the year, and nothing on this chart changes that attitude.

S&P 500 Video 27.07.18