S&P 500 Price Forecast November 6

The S&P 500 is probably going to be a bit volatile during the day as traders try to get in front of the election results of midterms. Ultimately, this is a market that I think will probably recognize the 2750 level as a major resistance, so if we were to break down below the 2700 level, that would fire off a fresh round of selling due to the shooting star on Friday. Otherwise, if we break above the top of the candle stick from the session on Friday, that would be a very strong signal that the market could go to 2800. Breaking above that level could open the door to much higher levels.

S&P 500 Video 06.11.18

There’s a lot of talk as to what the elections will accomplish, and if the Democrats take over the House of Representatives what that will mean. At this point, I think that’s probably what the market is already starting to price that in, so if the Republicans do in fact hang onto the House of Representatives I think that would probably bode well for permanent tax cuts and the like. That should be good for the stock market. At this point though, I think there are so many moving pieces that a lot of people were afraid to put significant amounts of money into the market, so with that in mind I suspect we probably still have somewhat of a downward slant until we get clarity.