S&P 500 Price Forecast December 15, 2017, Technical Analysis

The S&P 500 was sideways during most of the trading session on Thursday, but then rolled over to reach down towards the 2660 handle, where we are starting to see a bit of support. By doing so, we should continue to go to the upside, perhaps reaching towards the 2670 handle after that. A break above that level is a bullish sign, and should send this market towards the 2700 level longer term. I believe that the 2650 level underneath is the “floor” in the short term, and that buyers will be interested in picking up value in that general vicinity.

When I look at the stochastic oscillator, I see that we are getting towards the oversold area, and a cross over in this area could give us a reason to start buying again. I don’t have any interest in shorting this market, I think that eventually the “Santa Claus rally” will reassert itself as fund managers trying to make up for lackluster gains that they may have had during the year. The markets continue to be volatile, but quite frankly I don’t see the reason that we should break down significantly. I also believe that the algorithmic traders are going to take advantage of any dip that they fine, as they have done all year. I think that the 2600 level is almost a given at this point, so looking at this chart, I see value just waiting to happen. The market also has tax reform to look forward to from what things are looking like in Washington DC.

S&P 500 Video 15.12.17