S&P 500 Price Forecast January 12, 2018, Technical Analysis

The S&P 500 continues to be a “buy on the dips” market, as we are testing the highs while I record this. A break above the market should continue to go much higher, reaching towards the 2800 level above, perhaps reaching towards the 3000 level after that. I think pullbacks continue to offer value the traders are willing to take advantage of, and of course algorithmic systems. The tax breaks, the global growth story, and the overall attitude of the US economy seems to be bullish, so course the S&P 500 will continue to push this market.

I look at the 2725 level as a “floor” right now, and dips between here and there should continue to offer opportunities. The US dollar has been falling, and that helps exports which of course helps the S&P 500 as well. Keep in mind that most of the S&P 500 companies are either exporters or do business overseas, so the currency conversion cannot be understated. Ultimately, I think that the 2800 level will be targeted over the next couple of weeks, but it is of course going to be very choppy. The markets continue to benefit from the effect of fresh money coming into play after the holidays, as money managers continue to be looking to find stocks the on for clients. Right now, the bond markets are starting to sell all, and that typically means that we will see strength in stock markets as well, as the world is becoming much more interested in taking financial risk. Global stock markets tend to work in congruence, and they all right now looks very positive.

S&P 500 Video 12.01.18