S&P 500 Price Forecast November 22, 2017, Technical Analysis

The S&P 500 shot higher during the day on Tuesday, as traders in America trying to start the so-called “Santa Claus rally” that tends to happen every year. Ultimately, the 2600 level above is the major barrier that we are trying to break above, and it does look like we may be able to. However, we are bit overextended and it’s possible we may pull back. It is because of this that I am awaiting a daily close above the 2600 level to serve buying, and I also recognize that with Thanksgiving being on Thursday, it’s likely that the markets shrivel up after 24 hours. Ultimately, I think that the market will continue to be very noisy, with a proclivity to buy the dips going forward as algorithmic traders have done so for so long. If we do break above the 2600 level, the most logical place to look for resistance would be the 2650 handle, and I think that we will eventually find pullbacks to give us an opportunity to pick up value.

On the breakout, the 2600 level should offer a floor in the market, as what was once resistance should become support. That’s essentially how I’m looking at this market, and although we could pull back from here and go drifting lower, I have no interest in shorting this market as it is obvious that longer-term pressure is still to the upside. The general attitude of the market is every time we fall there is value, and towards the end of the year is very likely that we will have plenty of fund managers out there that need to prove themselves fully invested as the returns have been rather phenomenal the last several months. In general, I think upward is where we go.

S&P 500 Video 22.11.17