S&P 500 Price Forecast – stock markets rally again on Tuesday

The S&P 500 by all accounts looked healthy during the trading session on Tuesday, and I certainly don’t think that shorting is called for, even though I think we are about to get a pullback. Instead, I would prefer to buy dips as “value” and have several areas that I would be paying attention to as they strike me as being supported.

I believe that the 2840 level is supported, I also believe that the 2825 level is. Both of these were significant resistance in the past, so there will be a certain amount of order flow cycling around that area. I certainly would short the market but would rather wait for the market to drop down to much more reasonable levels to take advantage of value. Although we could go higher directly, I feel that it would be chasing the trade as we have had such a strong move over the last four trading sessions as seen on the hourly chart. Although a long way from here, I believe that the “floor” is the 2800 level now.

Look at dips as value propositions, as most traders will have missed this move after the recent selloff. There should be plenty of volume underneath that will be interested in trying to pick up the S&P 500 “on the cheap”, so take advantage of that and simply wait for a better opportunity to go long. If you are already long, then place your stops accordingly.

S&P 500 Video 08.08.18