S&P 500 Price Forecast October 24, 2017, Technical Analysis

The S&P 500 has been very volatile during the day on Monday, as the 25 Eddie level has been massively resistive. We have pulled back to test the 2570 handle, and both times it has offered support. I think we could probably break down from there as well, but longer-term I am still very bullish of the S&P 500 as the market has been in a very strong uptrend. However, we have got a little ahead of ourselves over the last couple of days, so this pullback is probably necessary. It should be a momentum building exercise, and that could give us an opportunity to pick up value at lower levels. Either way, I have no interest in shorting this market, and I recognize that when the S&P 500 dips, it offers value.

Ultimately, I think that we reach towards the 2600 level, and then of course break above there given enough time. That being the case, I like buying this market, and have no interest in shorting as I believe there is a bit of a “floor” in the market at the 2550 handle. The overall trend continues to be supported at the 2500 level as well, as long as we stay above there, the market should then remain in an uptrend longer term, so I like the S&P 500, and with the earnings season doing reasonably well, we should continue to get bullish momentum coming out of New York. The financials in particular are starting to show signs of strength, and that of course is always good for the S&P 500 longer term. Currently, it looks as if we continue the “buy on the dips” mentality that we have seen for so long. Expect noise at 2600, but then again, I expect us to go right through there.

S&P 500 Video 24.10.17