S&P 500 Price Forecast February 6, 2018, Technical Analysis
The S&P 500 has sold off rather drastically during the trading session on Monday, as we are starting to reach towards the 2700 level. The reason I have this chart so zoomed out is that the 2700 level should be an area of interest. We are getting a bit oversold, so I would expect some type of stability near this level, but I also can clearly see that if we break down below 2680, we go much further.
There seems to be a lot of negativity around the market suddenly, and this is healthy because we have seen such an overbought condition for so long. However, markets to move in one direction forever, and while that is true of the uptrend that we had seen recently, it is also true of this massive negative move that we have seen in the last couple of sessions.
Your capital is at risk
I believe that if you are patient enough, you can join in the uptrend that we have seen for some time, and I think it’s only a matter of time before that those of course happen. I believe that the patient trader that sits on the sidelines and wait for a supportive or bullish daily candle should be rewarded, and that if you wanted to short this market, you probably won’t be able to do so at this point as it would be chasing the trade. Remember, even though we sold off this drastically, this has only been about a 5% correction. While it feels horrible, the reality is that it is quite normal, despite what happened last year.