S&P 500 Price Forecast for the Week of August 7, 2017, Technical Analysis

The S&P 500 went sideways during the week, but we continue to see support just below at the 2450 handle. I believe that the market continues to reach towards the 2500 level, which should be resistive. I think that the market is probably going to consolidate at this point, so therefore short-term pullbacks might be buying opportunities. Quite frankly, I prefer trading vertical spreads if I get the opportunity, as opposed to being involved in the CFD markets. If I do have to trade a futures position or a CFD market, then I want to buy dips that get closer to the 2450 handle. Ultimately, this is a market that I think should continue to go to the upside.

Buying dips

I think at this point the best thing you can do is trying to buy dips as it gives you a bit of value. We could pullback from here, but I don’t think that the market can break down below the 2400 level. That is the “bottom” of the overall trend as far as I can see. Ultimately, I do think that we will eventually break above the $2500 level, because then we should continue to go much higher. If we did breakdown below the 2400 level, then I think the market will probably drop to the 2200 level underneath which is supportive as well. Expect volatility on short-term charts, but quite frankly I think it’s a market that is “buy on the dips” on short-term charts. Ultimately, this is a market that favors the upside, but it is starting to run out of steam a bit, which makes sense after the massive moved to the upside that we have seen. Selling isn’t a thought until we break below 2400 as stated above.

S&P 500 Video 07.8.17