S&P 500 Price Forecast February 13, 2018, Technical Analysis

The S&P 500 continued the rally from late Friday, as it looks like value hunters of come back. Longer-term, I believe that the S&P 500 is still ready to test the 3000 handle, which is my target for the year. If we can break above the 2700 level, we are on our way towards that level again. I think that pullbacks continue to be buying opportunities, and the “floor” in the market is the 2500 level. I think that the 2500 level should continue to be very supportive and breaking down below there would be rather negative. In general, I believe that jumping into the market slowly is probably the best way to go, building up a position for the ride higher. I think that a lot of psychological damage has been done, but the trend is still very much to the upside, even with the massive selloff that we had seen.

Pay attention to the bond markets, as yields climbing put a lot of pressure on stocks last week. If that starts again, then we will probably see negativity return. Otherwise, I expect that this is more of a grind to the upside, and something that you can build up slowly over the longer term. If we break down below the 2500 level, we would more than likely see another 10% drop, entering a significant bear market.

S&P 500 Video 13.02.18