S&P 500 Weekly Price Forecast – S&P 500 rallies again for the week

The S&P 500 has rallied significantly during the trading week, reaching towards the vital 2800 level. If we can break above this level, the market is likely to go much higher. The 2900 level above has been resistance, but I still have a longer-term target of 3000 based upon the upward momentum and of course the nice strong uptrend line underneath. I think that short-term pullbacks offer value, and it’s not until we break down below the 2700 level that I would be concerned.

Overall, I think that we will continue to be noisy yet positive. Even though we have the trade war going on out there, the reality is that the sanctions have not taken a chunk out of global GDP yet, and they are very minor and targeted. I think that the market is going to continue to look at this as a “buy on the dips” type situation, and therefore I remain bullish overall. I would not be short until we break down through the uptrend line, or at the very least the previously mentioned 2700 level above.

I like the idea of buying dips based upon value, and I think that most traders out there will continue to be attracted to this market based upon the relentless drive to the upside. I wouldn’t necessarily be buying here though, I would need to see the 2800 level cleared on at least a daily close. The alternate scenario of course is a supportive candle below, perhaps the 2740 level could offer enough support?

S&P 500 Video 16.07.18