S&P 500 Price Forecast January 4, 2018, Technical Analysis

The S&P 500 went sideways during the trading session initially during the day on Wednesday, but eventually broke out above the 2700 level, which of course is a very bullish sign. Now that we have broken above there, I think it’s only a matter of time before the S&P 500 goes higher, and the pullbacks should represent value that people are willing to take advantage of. Longer-term, I anticipate that the market is probably going to go to the 2725 handle, but we have the jobs number coming out on Friday and that of course can cause a bit of volatility. I am not a seller this market, and I believe that even if we found support at the 2695 handle, I’d be willing to buy there as well. No shorting between now and Friday, it would take a catastrophic jobs number for me to get shorting this market as we have seen so much in the way of positivity.

Ironically, a bad jobs number may produce a sudden selloff, followed by a buying opportunity as traders would then begin to think that perhaps the Federal Reserve isn’t willing to raise interest rates as high as originally thought. In other words, I think that one way or another, the S&P 500 find buyers and if you are careful, you can add to a position for a longer-term move. Granted, we are overdone, but the momentum to the upside is most certainly has taken control.

S&P 500 Video 03.01.18