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S&P 500 Price Forecast February 16, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Feb 16, 2018, 05:26 UTC

The S&P 500 was very noisy, as stock markets in America were volatile on Thursday. However, like it’s cousins, the S&P 500 rallied significantly and show signs of life yet again.

S & P 500 daily chart, February 16, 2018

The S&P 500 initially fell below the 2700 level during the day on Thursday but found enough support underneath to bounce and break to the upside. The market clearing the 2700 level would of course be a very bullish sign, and therefore think more buyers are getting ready to jump in and yet again. As I record this, it looks as if the 2720 level will be broken, and if it does it will be a fresh, new high, and should send this market looking towards the 2750 level. That’s an area that I think will offer a bit of resistance, but at the end of the day I think it’ll get broken as well as there’s no reason to think that is can be any different.

Currently, I believe that the market has a hard floor at the 2500 level and is not until we break down below there that I would be concerned about the entire uptrend. I believe that algorithmic traders will continue to go into the marketplace looking for reasons to pick up value, something that seems to present itself every few days. I have a longer-term target of 3000, and even with the recent volatility that has not changed. If we can break above 3000, who knows where the market ends up? In the meantime, I believe in buying these dips, right along with the algorithmic traders as it is a good way to build up a large core position and lever up your returns. The US dollar falling seems to be helping as well, so keep an eye on the US Dollar Index.

S&P 500 Video 16.02.18

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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