S&P 500 Price Forecast July 18, 2017, Technical Analysis

S&P 500

The S&P 500 had a very quiet session on Monday as traders are awaiting significant earnings reports coming out of the United States. However, we have broken above significant resistance, so I think it’s only a matter of time before we continue to the upside. The market will then target the 2500 level which I believe is massively resistive, but has been a longer-term target of mine for some time. I believe that the 2450 level underneath will continue to be a bit of a “floor” after previously being so resistive. I think that the market will eventually break above the 2500 level, but in the meantime, we need to build up the momentum to reach those levels.

Buying dips

I continue to follow the rally in the S&P 500, and certainly don’t want to trade against it. Because of this, I believe that the markets continue to offer buying opportunities on dips, as it represents value in one of the more reliable indices that I follow around the world. I recognize the 2500 is a major barrier to overcome, but I think it’s only a matter of time. I believe that these pullbacks offer value that people will be looking to take advantage of, especially if earnings season is strong. The Federal Reserve looks very unlikely to be able to raise rates aggressively, and therefore I think stocks will continue to benefit from that scenario. In fact, I don’t have any interest in shorting this market until we break down below the 2400 level, which does not look likely to happen anytime soon. I am essentially a “buy only” trader in the S&P 500 currently, as we continue to build up pressure to finally break out to the upside of the 2500 handle longer term.

S&P 500 Video 18.7.17