S&P 500 Price Forecast October 20, 2017, Technical Analysis

The S&P 500 had a very volatile session on Thursday, as traders around the world freaked out. However, the 2550 level has offered significant support, and it now looks as if. I continue to rally from here. I look at pullbacks as buying opportunities, and will be willing to add small positions onto a larger core position as we rally. The large green candle that you see on the chart coincides with the Americans coming to work and jumping in on value, so this is clearly a European phenomenon. With that being the case, I anticipate that the S&P 500 will continue to show signs of resiliency, as the Americans are the bulk of the volume. I think that we will go looking towards the 2565 handle, and that every time Europe sells off, it’s an opportunity to buy the S&P 500, at least short-term.

If we did breakdown below the 2540 handle, then the market could fall significantly, but until then I’m not impressed. I think that the longer-term trend remains intact, and therefore it’s only a matter of time before the buyers jump all over the opportunities that will almost certainly present themselves. Longer-term, I think we go to the 2600 level, but it’s going to take a while to get there, especially considering that we are in the middle of earnings season and that of course can cause significant amounts of volatility. However, the earnings season has been very good, so that should continue to be upward momentum inducing when it comes to the S&P 500 as after it is all said and done, earnings announcements are the main driver of stocks, and the selloff was probably more to do with macroeconomic fears in general, most of which are of the political variety, and have nothing to do with the companies on the S&P 500.

S&P 500 Video 20.10.17