S&P 500 Price Forecast October 27, 2017, Technical Analysis

The S&P 500 had a choppy session on Thursday, as we are trying to digest a lot of the noise in is that had been prevalent on Wednesday. Because of this, I believe that the market will continue to be difficult to navigate, but the one thing that does seem to offer some type of stability is the 2550 handle as support. I think that extends down to the 2540 handle, so think of it more as a zone than anything else. If we were to break out above the 2575 handle, then we could probably go to the 2600 level, but quite frankly I think buying dips will continue to be the best way to play this market, as that has been the case for several months now. Longer-term, I think we not only reach the 2600 level, but we probably go much higher than that. The market has gotten a bit overstretched though, so I think that any pullback that we get in the short-term charts will be healthy for the longer-term uptrend.

Don’t forget that we are in the middle of the earnings season, and there is going to be volatility because of that. I also believe that the 2500 level underneath is the “floor” in the longer-term uptrend, so even if we were to break down below the 2550 handle, I’m not overly concerned, and have no interest in shorting the S&P 500 anytime soon. In fact, it’s not until we break down below 2490 that I become concerned with the longer-term trend. In the meantime, we simply continue to grind around and make a lot of noise in a market that has been choppy, yet bullish. Small position sizing or perhaps playing the options markets will be the way to go.

S&P 500 Video 27.10.17