S&P 500 Price Forecast October 26, 2017, Technical Analysis

The S&P 500 initially went sideways, but as the Americans came on board, sold off rather drastically. We reached down towards the 2550 level will we started to see a bit of support, and this is the initial place where I think the buyers may be interested in picking up a bit of value. Even if we break down below here, I think that we will eventually find support at the lower levels, perhaps extend down to the 2500 level. Quite frankly, this market needs to pull back to build up momentum to the upside to continue the uptrend. We have been overextended for quite some time, and this type of creative destruction should be very good for the market and its long-term health ahead.

S&P 500 Video 26.10.17

I’m not willing to sell this market, but I also recognize that perhaps waiting for some stability might be the best way to play it. Being on the sideline is taking a position as well, after all, you are showing your ambivalence. I think that perhaps this might be a nice opportunity to pick up value at the lower end, and I will wait to see how the day plays out today to put money to work. At this point, it looks very likely that we are going to step to the sidelines and allow the “hot money” to go out of the market, as it is always the first to leave. The investors below will support the market for what I see, and even with this type of negativity, on the longer-term charts, I see no reason to short this market. As I trade with the trend whenever possible, but I don’t see a buying opportunity, it’s very difficult to be involved in the S&P 500 currently.