S&P 500 Forecast July 5, 2017, Technical Analysis
The S&P 500 gapped lower in the CFD market on Tuesday, but then went sideways to show signs of support at the 2425 handle. By rallying the way, we did, the market tried to fill the gap, but quite frankly the action on Tuesday will be unimportant, as the markets will more than likely should readjust to what’s happening with the underlying index which of course was closed for Independence Day. Because of this, I don’t read too much into the chart but I do look at the market as one that has a lot of support underneath it, and that we are more than likely going to find buyers based upon the recent action. I think that the S&P 500 will go looking for the 2450 handle, and then perhaps try to break above there. Once we do, the market should then go looking towards the 2500 handle after that which of course is a large, round, psychologically significant target.
Buying pullbacks
I believe in buying pullbacks when it comes to the S&P 500, so that of course translates to the CFD market as well. With this in mind, is very likely that the buyers will look at pullbacks as value in a market that should continue to show strength in general. After all, earning season has gone very well, and that should continue to propel the market to the upside. The fact that the Federal Reserve looks to be tightening should help as it shows signs that the US market is perhaps reflecting a stronger economy underlying. The market should then continue to reach to even higher levels, but I think that the 2500 level will be significantly resistive as it is a major psychological level that will probably cause certain selling pressure.
S&P 500 Video 05.7.17
This article was originally posted on FX Empire