S&P 500 Price Forecast November 8

We have cleared the 2750 level rather decidedly during trading on Wednesday, and I think at this point we are likely to see quite a bit of volatility just above at the 2800 level. If we can clear that, an area that I think coincides nicely with the purple ellipse on the chart, then I think finally we’ve cleared enough trouble to anticipate a move much higher, perhaps to the 2900 level or even the 3000 level. Remember, there is a seasonality to the S&P 500 known as the “Santa Claus rally”, and I think a lot of traders will be looking for that.

S&P 500 Video 08.11.18

Conversely, if we break down below the 2700 level, we will almost certainly reach the lows again. I don’t think there’s going to be too much in the way of trouble ahead, with perhaps the exception of the Sino-American trade war which of course is one of the biggest problems. Beyond that, we also have rising interest rates in America, but with the economy booming the way it is in the United States, that’s actually a good thing. I think that we are going to make a serious attempt to break out to the upside. I would wait for a daily close above 2800, and then be a buyer of this market. I would hope and anticipate that the 2750 level should offer a somewhat significant amount of support in this market, so breaking down below that would lead to at best a range bound opportunity for traders. The S&P 500 has seen a lot of technical damage as of late, but it looks like we are trying to turn the boat around.