S&P 500 Price Forecast January 10, 2018, Technical Analysis

The S&P 500 rallied a bit during the trading session on Tuesday, breaking above the 2750 handle. This is an area that has been very important from a psychological standpoint, but given enough time I think that it will simply be yet another blip on the radar. The market has been in a nice uptrend for months, and the short-term charts looks very similar, considering that the 24-hour exponential moving average is sitting just below current pricing. It has been reliable support, and I think that the market continues to reach towards the 2800 level next. Longer-term, I fully anticipate that the S&P 500 is going to go looking towards the 3000 handle, but that may take a few months to get to.

I look at the 2700 level right now as a potential floor in the uptrend, but I also recognize that even below that level, I would be cautious about shorting until we break down below the 2500 level. This is a market that has been extraordinarily positive over the last year, and I see absolutely no reason this is going to slow down. Buying on the dips continues to be the best way to go, adding slowly on dips to what would be a larger core position. I think that the buyers continue to dominate, so look at pullbacks as value and what has obviously been a strong move.

S&P 500 Video 10.01.18