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S&P 500 Price Forecast December 27, 2017, Technical Analysis

By:
Christopher Lewis
Updated: Dec 27, 2017, 05:39 UTC

The S&P 500 did very little during the day on Tuesday, but with a lack of volume that’s not much in the way of surprise. Because of this, I think you must look at the longer-term charts more than anything else.

S & P 500 daily chart, December 27, 2017

The S&P 500 went sideways during the trading session on Tuesday, but that’s a much of a surprise as there is very little in the way of volume or conviction as the market is focused more on the holidays than anything else. I think that we can break out to the upside, the market will continue the longer-term move to the upside. I believe the pullbacks will have plenty of support underneath, with a bit of a floor down at the 2650 handle. I think as long as we can stay above there, the market is very healthy and very bullish. I also recognize that the tax cuts will provide a little bit of a boost for the economy in the United States, and that should eventually show itself in the US stock markets in general. I do believe that every time we dip, it’s nicely a buying opportunity.

If we were to break down below the 2650 handle, then the market could breakdown to the 2600 level after that. I believe that the 2600 level is the “floor” in the market, as we could continue to be bullish in general, but the lack of liquidity could cause major issues. All things being equal, I believe in buying the dips and adding to those positions as longer-term the stock markets look to be very bullish in the beginning of the new year. Longer-term, I believe that the market is going to break above the 2700 level, and go looking towards 2750.

S&P 500 Video 27.12.17

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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