S&P 500 Price Forecast July 10, 2017, Technical Analysis

The S&P 500 initially went sideways during the day on Friday, as the market awaited the jobs number coming out of the United States. It was much better than expected, so the S&P 500 got a bit of a boost during the day as we reached towards the 2420 handle. The market has stabilized just below there, so I think the given enough time it’s likely that the buyers will return and perhaps send this market towards the 2425 handle. If we can break above the 2425 handle, that would be a very bullish sign, and could send this market looking as high as 2450 above, which has been resistance several times now. A break above that sends the market looking towards my longer-term target of 2500.

Buying pullbacks

I continue to buy pullbacks, because quite frankly this is a market that longer-term has been very healthy, and the 2400 level below has been very supportive in general. I like the idea the S&P 500 being bought, because the earnings season was very good, and therefore it becomes a “buy on the pullbacks” type of situation. That’s not to say that we won’t fall or can, just that there seems to be a certain amount of buying pressure in this general vicinity. I think that the S&P 500 continues to reflect a strengthening US economy, and of course growing corporate profits coming out of the United States. If we break down below the 2400 level, I think then the market could drop a bit, but currently I think that level holds firm and therefore would be cautious about trying to sell. All things being equal, I believe the buyers will step in and take advantage of this market as it has gotten cheaper over the last several sessions.

S&P 500 Video 10.7.17