S&P 500 Price Forecast November 2, 2017, Technical Analysis

The S&P 500 initially tried to rally during the day on Wednesday but found enough resistance near the 2588 handle above to roll things over and reach back towards the 2575 handle. That’s an area that has been resistance in the past and now looks to very being supportive longer-term, I do like the S&P 500, but quite frankly we have gotten a bit overdone at this point. The market should continue to be noisy, and if we can break down below 2507 a handle, I think at that point the market will go looking towards the 2550 level. Alternately, if we get a bounce from here, the market should go looking towards the 2600 level above, which of course is the next large, round, psychologically significant level. That’s an area that should be resistive, but I think it’s going to be temporary at best.

S&P 500 Video 02.11.17

We are in the middle of earnings season, and of course, people are concerned about what the Federal Reserve may do, so that has a bit of volatility reentering the marketplace. Longer-term, I believe that the buyers will return because quite frankly even if interest rates to rise a bit, they are not going to be anywhere near high enough to take the stock market down anytime soon. I look at the 2500 level as the “floor” in the market longer term now, so I believe that if you are patient enough, you should get an opportunity to go long of the S&P 500. I’d be willing to take a small position now and then add on the dip or perhaps even a breakout above. There continues to be a lot of noise, but quite frankly I think we will continue the uptrend eventually. Because of this, I don’t have any interest in shorting.