S&P 500 Price Forecast September 29, 2017, Technical Analysis
The S&P 500 initially fell during the Thursday session, testing the 2500 level but as you can see we have turned around completely yet again. It continues to be a “buy the dips” market, as I believe algorithmic traders continue to program the computers to do such types of traits. I think that eventually we go looking towards the 2510 level again, and then break out to the 2525 handle. The 2500 level is obviously supportive, and I think that support extends down to the 2490 handle. With the potential tax cuts coming, that of course has offered a significant amount of bullish pressure for the S&P 500 as well, but quite frankly the market seems to be in an automatic trade. I think that given enough time, the markets will continue to find these dips as value. I think the markets breaking below the 2490 handle would be very negative, but I don’t see that happening anytime soon. In fact, we would have to see some type of massive change in the attitude.
I think that the 2525 level continues to be the longer-term target, and then eventually the 2550 level. The breaking of the 2500 level is a very bullish sign, as it is a large, round, psychologically significant number. This is a major number on the longer-term charts, as it has such whole number positive aspects. The hedge funds out there continue to buy these dips, as there’s nothing else to do, and it looks as if the global economy is continuing to strengthen. This should help the S&P 500 as it has a lot of multinational companies, and that of course suggests that there will be plenty of earnings potential’s around the world, and that the company’s balance sheet should continue to strengthen.
S&P 500 Video 29.9.17
This article was originally posted on FX Empire