S&P 500 Price Forecast January 8, 2018, Technical Analysis

The S&P 500 rallied a bit during the trading session on Friday, as we reached above the 2725 handle, and perhaps ready to go towards the 2750 level. This is a market that continues to find buyers on dips, as algorithmic traders have been very aggressive in this market. I think that the market will eventually go looking towards the 2800 level, but it is going to take some time to get there. In the meantime, the 2750 level is a target. Markets continue to find a bit of a “floor” below at the 2700 level, so I think that the market can be bought if we can stay above that level. A breakdown below that level would have me rethinking the situation, although not necessarily willing to kill the uptrend or start selling yet.

Longer-term, I suspect that traders are going to go looking towards the 3000 level, and there’s nothing on the charts that suggests they can do it. The markets look likely to continue to favor dips as value, and with the economic numbers on the United States coming out rather strong, although the jobs number came out during the day on Friday was a bit soft, I think that we will continue to see people willing to pick up the S&P 500 on the cheap. Value hunters a bound, and of course that will continue to put a bit of a bid in this market over the next several months.

S&P 500 Video 08.01.18