S&P 500 Price Forecast February 1, 2018, Technical Analysis

The S&P 500 had a rally at the beginning of the session on Wednesday but has been turned around near the 2840 level. Later in the day, it looks likely that we are going to try to go to the upside, sending this market towards the 2850 handle, and then beyond them to the 2880 handle. I like the S&P 500 longer term, but I also recognize that with the jobs number coming out on Friday, it’s likely that the next 24 hours could be quiet. I look at the 2800 level underneath as the “floor” in the market and would be very surprised to see this market fall below that level. The volume has been a bit thin over the last couple of days, and that’s not a huge surprise considering that the jobs number has such a massive influence.

If we were to break down below the 2800 level, the market could drop to the 2775 level, followed by the 2750 level. I like the idea of going long on short-term pullbacks, and that’s essentially what we have seen. Longer-term, I anticipate that the market is going to go towards the 3000 handle, but that is a story for summer, if not later in the year. If we were to break down significantly, I anticipate that it’s only a matter of time before value hunters come back in.

S&P 500 Video 01.02.18