S&P 500 Price Forecast January 26, 2018, Technical Analysis

The S&P 500 continues to be very noisy as Thursday was very range bound. I think that the market is trying to break out to the upside and clearing the 2850 level should free the market to go to the 2900 level, and then eventually the longer-term target: 3000. Every time we pull back, it should be a buying opportunity and I think that the 2825 level is currently offering a bit of a “floor” in the market. If we continue to grind sideways, I think that people are starting to add to their positions, and eventually we will get the necessary momentum to go higher. It’s not until we break down below the 2800 level that I would be concerned, but even then, I wouldn’t be a seller of the S&P 500 as we continue to see algorithmic traders come in and jump on anything it looks like value.

This is a market that has been very aggressive after New Year’s Day, and I think that is going to continue to be the case, as a lot of money managers will be chasing returns. If we break down below the 2800 level, then I’m going to start looking at the longer-term charts for some sense of direction. A weakening US dollar continues to help the S&P 500, as it also makes US exports cheap for the rest of the world by.

S&P 500 Video 26.01.18