S&P 500 Price Forecast – stock have nowhere to go

The S&P 500 tried to rally during the day, but gave back the gains towards midday, as the talks between the United States and Canada suddenly are front and center. At the end of the day, it’s almost impossible to believe that the Americans and Canadians will actually come together, but algorithmic traders go out into the Twitter arena and look for headlines to make trading decisions. It can be said that the last couple of days are an argument for why algorithmic trading causes more disruption than good, because the robots will simply buy or sell and not think anything of it. With that being the case, we see extreme amounts of volatility, but when we look at the longer-term charts it’s hard not to notice that we are bullish indeed.

I believe that the market will eventually find reasons to go higher, not the least of which will be corporate earnings. If we get an announcement from the United States and China that they have come to an agreement, that will probably send markets straight up. I have watched wild swings in both the stock markets and the energy markets over the last couple of days, and quite frankly at this point I would look for longer-term signals to trade to the upside more than anything else. With Labor Day coming on Monday, the markets will be closed so this is all about headlines at this point.

S&P 500 Video 03.09.18