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S&P 500 Price Forecast January 2, 2018, Technical Analysis

S&P 500 traders were active on Friday, as we witness quite a bit of volatility. Some of this of course would have been traders closing out positions before the end of the year, and one thing that is probably worth noting is the first thing Americans did was sell. However, I think that these pullbacks continue to offer value, but obviously the 2700 level has been very difficult to overcome. · FX Empire
Christopher Lewis
Updated

The S&P 500 rallied a bit during the trading session on Friday, reaching towards the 2697 handle before rolling over. As we did, it was a strong move, and it could signify a bit we just could not hang on to the volume. However, I think it’s only a matter of time before the buyers step in and it appears that the 2675 level is offering support. I fully anticipate that the 2700 level gets broken almost immediately this year, especially if the jobs number is decent this week.

Alternately, if we did breakdown below the 2675 handle, I think it’s only a matter of time before we find buyers at 2650. That’s an area that even more supportive, and I would be much quicker to get involved if that value presents itself. I would be stunned if we break down below there, because I think that the overall reasons for the market going higher continue, and of course this is going to be looked at as a value proposition. Once we break above the 2700 level, I suspect that we will target the 2725 level next. Stock markets continue to be in a “risk on” mood, as global performance economically has been strong, and it is apparent that the US GDP of roughly 3% means that the S&P 500 should continue to show nice profits.

S&P 500 Video 02.01.18

This article was originally posted on FX Empire

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