S&P 500 Price Forecast January 17, 2018, Technical Analysis

The S&P 500 initially went higher during the trading session on Tuesday, but then rolled over rather significantly as the 2800 level has offered too much in the way of resistance. I think there is more than enough support underneath though, so given enough time it’s likely that we will find buyers, so I would not be overly anxious to start shorting at this point. I suspect that the 2750 level is a massive support area, just as the 2700 level is. I think it’s only a matter of time before we see the buyers jump in so I’m looking for signs of a bounce, or perhaps an oversold condition on the stochastic oscillator, followed very quickly by a crossover of the moving averages. As a record this, we are starting to see that happen on the one-hour chart, so it may not take long to happen.

If we break down below the 2700 level, then I would be concerned, but until then I think it’s very unlikely that we will see that much bearish pressure, and I would also anticipate that money managers coming back from the holiday will be looking to put more money to work. We are bit overextended, so it’s not a big surprise that buyers return on these dips. The 2800 level will eventually be broken, but pulling back is probably a nice opportunity to build up the necessary momentum to go higher. Expect volatility, but it is a market that will certainly favor the upside.

S&P 500 Video 17.01.18