S&P 500 Price Forecast November 9

The S&P 500 did very little during trading on Thursday, perhaps in a bit of a hangover after the explosive move on Wednesday in reaction to getting the midterm elections in the United States out of the way.
Christopher Lewis
S & P 500 daily chart, November 09, 2018

The S&P 500 continues to be very choppy overall, but after the explosive move to the upside on Wednesday, it makes sense that Thursday was kind of quiet. I think at this point, we are likely to see a little bit of a pullback, but if we do clear the top of the candle stick from Wednesday, then we could go even higher. Overall, the 2900 level would be the target, followed by the 3000 level. However, if we turn back around and break below the 2800 level, there probably sends the market down to the 2775 handle.

S&P 500 Video 09.11.18

Overall, I think that the market is also trying to deal with the 61.8% Fibonacci retracement level, just above the clothes on Wednesday. If we do break above that, then I think it sends the market into the “all clear” mode to the upside. That would probably send this market up in a rush, as it would show a resiliency that market participants would embrace. We also have the so-called “Santa Claus rally” coming under typical circumstances, and I think at this point it’s likely that the larger fund managers will attempt to make that happen as they try to boost their returns is the report to clients. This happens every year, when underperforming asset managers have to chase the market. I think between that and a break of the 61.8% Fibonacci retracement level could get things going.

However, if we wipe out the major move higher during the trading session on Wednesday, that would probably send this market much lower, perhaps to the 2700 region.

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