S&P 500 Price Forecast October 16, 2017, Technical Analysis

The S&P 500 initially was choppy at the open for Friday, but then bounced from the 2550 level to go to higher levels. We now look as if we are free to go even higher, and I think that these pullbacks will continue to offer value. Money is flowing into the S&P 500, as stock markets continue to rally overall. Also, keep in mind that financial stocks are doing better, which does, of course, make up a significant slice of the S&P 500, as interest rates continue to rise. I think the 2550 level now is going to offer a bit of a floor, extending down to the 2540 level. Ultimately, the market should then go to the 2600 level above, which should be resistant due to the large, round, psychological nature of the level.

Choppiness continues, but I think that buying on the dips continues to be the best way to play this market, and you can probably say that about stock markets worldwide in general. I think that given enough time the markets will find a reason to go long, and with earnings season coming, I suspect that might be it. After all, there is nothing better for stock markets than good earnings. There are also questions about the overall growth of the global economy, and if it continues to look healthy, that will also drive stock markets higher, just as we look at it as a “risk on” move.

S&P 500 Video 16.10.17

Over the last several sessions, we see the US dollar struggle a bit, and that, of course, helps the S&P 500 as well, because it helps exports out of the United States. Ultimately, this market continues to see volatility, but certainly, it seems as if every time we drop, the buyers are willing to come back.