The S&P 500 initially tried to rally during the week but found more than enough trouble at the 2700 level to keep the market down. Because of this, it’s likely that we will continue to see a bit of a pullback, and I think that there is more than enough support below to keep the uptrend going. Beyond that, we have the jobs number coming out and it’s likely that it will influence where we go next. The 2700 level offered resistance is not a huge surprise, because it is a large, round, psychologically significant number. If we were to break down below the 2600 level though, that would perhaps mean something a bit more significant. I think we have gotten a little bit overextended on the stochastic oscillator weekly timeframe, and of course we are starting to cross it makes sense that we may pull back, either due to a lack of volume, or perhaps traders sitting on the sidelines and waiting for the years first jobs number.

Once we break the 2700 level, I believe that we continue towards the 2725 level, and then eventually the 2800 level after that. Longer-term, I believe that the uptrend is very healthy and very much intact, as general stock market attitude is bullish. The GDP in America is above 3% for the first time in ages, and that should only help corporate profits. With money flowing back overseas and into America, it’s likely that we will have a lot of stock buybacks coming out of corporate America as well.

S&P 500 Video 02.01.18

This article was originally posted on FX Empire

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