S&P 500 Price Forecast January 24, 2018, Technical Analysis

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Updated: Jan 24, 2018, 04:46 GMT+00:00

US stock markets continue to grind to the upside overall, as they are one of the more bullish markets that you can be involved in right now. The market shows that even when we pull back, our go traders are willing to jump in and pick up value. This has been the case for months, and there’s nothing on this chart that suggests it’s about to change.

The S&P 500 rallied a bit during the day on Tuesday as Americans came back to work, based upon stronger corporate earnings. We have the tax bill working in favor of the US economy as well, and that of course has push this market higher recently. I believe that the market will eventually go to the 2850 handle, and then eventually the 2900 level. Longer-term, I’m anticipating a 3000-handle test, but it will take a significant amount of momentum to get there.

Pullbacks offer value, and I believe there is a massive amount of support closer to the 2800 level. The stochastic oscillator is healthy looking, and volume is somewhat decent. Yes, the stock markets in America are essentially price to perfection, meaning that we may have sudden pullbacks, but the trend is very clear, and it is very bullish. I look at pullbacks as value, and it’s not until we break down significantly lower that I would consider selling. In fact, I don’t necessarily have a scenario in which a willing to do so but would keep an eye open for some type of change to the overall attitude. The S&P 500 should continue to benefit from not only strong economic indications in the US, but also a weaker US dollar, which helps exports out of America, and typically will lift the stock market overall.

S&P 500 Video 24.01.18

About the Author

Christopher Lewisauthor

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.