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S&P 500 Price Forecast for the Week of November 6, 2017, Technical Analysis
The S&P 500 fell initially during the week but turned around to form a hammer. This is a market that shows an extreme amount of support at the 2550 level, but quite frankly I am getting a bit concerned as we are overbought. Ultimately, this market should go looking towards the 2600 level, and we … Continue reading S&P 500 Price Forecast for the Week of November 6, 2017, Technical Analysis · FX Empire
Christopher Lewis
Updated

The S&P 500 fell initially during the week but turned around to form a hammer. This is a market that shows an extreme amount of support at the 2550 level, but quite frankly I am getting a bit concerned as we are overbought. Ultimately, this market should go looking towards the 2600 level, and we could very well do that this week. I think the dips are buying opportunities, and that’s exactly how they should be looked at, opportunities to pick up value. Once we can break above the 2600 level, the market should go much higher, perhaps reaching towards the 2700 level.

The 2500 level underneath should be even more supportive, as it was previous resistance. Ultimately, the market should continue to go much higher, as the overall attitude of the market continues to go higher. I think that the market continues to get supported by stronger earnings reports, and therefore I think it’s only a matter of time before the overall uptrend continues these pullbacks. I would not get shaken out of the uptrend on volatility, as I think the market has clearly made up its mind the longer term. We are getting a bit extended though, so be careful as jumping in with both feet is an opportunity to lose money rapidly if we get some type of shock.

S&P 500 Video 06.11.17

The US dollar is strengthening, so it’s possible that you may get some headwinds coming from there, but given enough time I still think that we are buyers. It’s not until we break down below the 2500 level that I would be concerned, as it would show a massive amount of negativity, and perhaps a major shift in attitude. Until then, it’s likely that the market continues to suck more money into play.

This article was originally posted on FX Empire

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