S&P 500 Price forecast for the week of July 17, 2017, Technical Analysis
The S&P 500 initially fell during the week, but found enough support underneath to turn things around and reach towards the 2450 handle. If we can break above the 2455 level, the market should continue to go higher, and perhaps reach towards the 2500 level. The market is in an uptrend, so this is my base case scenario, that we will eventually break out to the upside, but we may have to pull back in the short term to build up the momentum to do so. The 2500 level above is massively resistive, but I think given enough time we will probably break above there as well. The Federal Reserve looks likely to raise rates, but it is going to be in a very slow and deliberate manner. Because of this, the market is likely a bit comforted with the idea of the Federal Reserve tightening the policy.
Poor inflationary numbers
Poor inflationary numbers coming out on Friday in the United States of course stokes more optimism in the markets, as it looks like the tightening cycle might be very slow. Because of this, I believe it’s only a matter of time before the buyers return based upon value, and I suspect that the 2400 level should continue to be the “floor” of the market, and that being the case it’s likely that the buyers will return in an aggressive manner if we do pull back to that level. Based on the fact that we are closing towards the top of the candle though, I anticipate that the market will probably break out rather quickly, and with a certain amount of bullish vigor. Pullbacks could happen as I sent, but I believe that the market is already showing where it wants to go next.
This article was originally posted on FX Empire