S&P 500 Price Forecast January 30, 2018, Technical Analysis

The S&P 500 has drifted a bit lower during the trading session on Monday, looking towards the 2850 level. That’s an area that is support for what I see, just as it had previously been resistance. It’s a large, round, psychologically significant number, and seems to attract a lot of volume at times. Algorithmic traders continue to keep this market afloat, and I don’t see that changing in the short term. Ultimately, the market should continue to go towards the 2900 level, and then possibly the 3000 level longer term.

If we do break down from here, it’s likely that the 2825 level underneath will be the massive support that we need to remain above to continue the uptrend short-term, but longer-term I think that it’s very difficult to short this market anyway. So, this point, I like the idea of buying dips and that of course has presented itself more than once. I think that the algorithms continue to be attracted to the market on dips, as we can’t seem to break down more than 1%. Ultimately, I anticipate that the market is ready to go higher, and with the falling US dollar longer-term, it’s likely that the S&P 500 continues to go higher. In fact, I believe that stocks in general continue to rally for at least the next few months, but one should be careful to put too much money in this market, because the volatility will only increase as we become more parabolic.

S&P 500 Video 30.01.18