S&P 500 Price Forecast October 31, 2017, Technical Analysis

The S&P 500 drifted a bit lower during the day on Monday, then broke down significantly to reach towards the 2570 handle. I think that the 2550 level underneath is the “floor” in the market, and I also believe that there’s only a matter of time before the buyers get involved. If the market finds signs of support underneath, then it’s time to get involved yet again. It seems like every time the S&P 500 falls significantly, the buyers will be attracted based upon value. It’s not until we break down below the 2550 level that I am concerned, and even then, I’m not willing to sell this market. The 2500 level underneath should be an absolute “floor” in the market, and it’s not until we break down below there that I would be willing to short this market. The uptrend is very much intact if we can stay above there, and I believe that the market is more than likely going to go looking towards the 2600 level above.

S&P 500 Video 31.10.17

I believe that the volatility continues to be an issue, but algorithmic traders continue to jump into this market, picking up these pullbacks and until it stops happening, it’s likely that we will continue to see these automatic trading robots come into the marketplace. I have been selling puts in the futures markets and doing quite well with this. CFD markets are a good alternative because you can then control your position size, thereby taking advantage of the volatility and protecting your account simultaneously. Once we do get a breakout, I believe it will be more of a buy-and-hold situation, but we are extended quite a bit on longer-term charts. The S&P 500 is in the middle of earnings season, so keep that in mind as well.