S&P 500 Price Forecast February 14, 2018, Technical Analysis

The S&P 500 has gone sideways during the trading session on Tuesday, as traders are trying to build up momentum. The 2500 level underneath looks to be very supportive, and I believe that the market is going to be positive if we can stay above there. It’s going to take a lot of work, but eventually we should rally. The S&P 500 by most pundits is expected to reach towards the 3000 handle over the longer term, and I think sometime this year it will be achieved. However, if we break down below the 2500 level, the market should roll over and continue to go lower.

If we do eventually find some type of volume, I believe that the market will break above the 2700 level, and then go even higher. Overall, I believe that these pullbacks offer buying opportunities, and therefore you should take advantage of them in slow incremental pieces, so you can build up a larger core position. If we break down, then I might start looking at shorting aggressively, at least for a couple of hundred points. In general, I believe that risk appetite is trying to build up, and the so-called “smart money” is trying to find an opportunity in this area. I think we are in an accumulation phase, so it may take several sessions to get to break out to the upside. Once we do, I think that we will go right back to what we had seen previously.

S&P 500 Video 14.02.18