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S&P 500 Price Forecast – S&P 500 choppy to end the week

The S&P 500 was very choppy in the week on Friday, reaching just above where we opened in the CFD market. As I record this, it looks as if the 2810 level is going to offer significant resistance. I think that resistance extends higher, so at this point I don’t think the market is quite ready to take off.
Christopher Lewis
S & P 500 daily chart, July 23, 2018

The S&P 500 was very volatile during the trading session on Friday, reacting to the 2800 level as an area of significant support and resistance in the past. I think that the market is also reacting to tweets by Donald Trump, suggesting that the interest rate hikes coming from the Federal Reserve should be slowed, rallying, but then pulling back as soon as everybody remembered that he doesn’t have that power. Ultimately, this is just choppiness and churning, as we are waiting for a larger catalyst to decide whether we can break above the 2820 handle, and continue the run to the 2880, or if we turn around and break down below 2788 and run a bit lower. At this point, I think it’s probably best to play this from a short-term perspective, and use a range bound system.

I like the idea of going back and forth and picking up little bits and pieces, perhaps using something along the lines of the stochastic oscillator to help you make your trades. Overall though, I do think that longer-term we will probably try to find a reason to rally, it certainly looks as if the market is going to be persistent about that. One of the first clues might be the currency markets, because if the US dollar can continue to lose a little bit of value, that should help stock markets as well.

S&P 500 Video 23.07.18

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