S&P 500 Price Forecast February 20, 2018, Technical Analysis

The S&P 500 initially went sideways during trading on Tuesday, but then fell about 0.73% at the time of recording after comments from Federal Reserve Chair Jerome Powell suggesting that the Federal Reserve was ready to continue its rate tightening cycle. This isn’t much of a surprise, but the market reacted anyway. It looks as if there is support below, especially near the 2740 level, and of course the 2750 level as well. I believe that longer-term, the market does go higher, as we already know that rates are going to go higher. The 2700 level underneath should be a bit of a “floor” in the market, so a breakdown below there would be rather negative. I think that the market will eventually not only break above the 2800 level, but perhaps go towards the 2900 level after that. Longer-term, I still believe that we are going to the 3000 handle after that. I believe that the 3000 level will be reached by the end of the year, but these pullbacks will occur occasionally. These pullbacks should offer buying opportunities, and it should be noted that last week ended up forming a nice-looking hammer at the 2700 level on the weekly time period. This is a very bullish sign, and I believe that it is only a matter of time before the buyers return.

If we break down below 2700 level, then I think we “reset” closer to the 2650 level underneath which should also be supportive based upon previous action.

S&P 500 Video 28.02.18