S&P 500 Price forecast for the week of October 23, 2017, Technical Analysis

The S&P 500 initially fell during the week but found enough support at the 2540 handle to turn things around and rally significantly. Friday was a very bullish session, as we had got word that there is the possibility of tax cuts being pushed out of Washington DC now, and it’s likely that we will continue to see bullish pressure in the S&P 500. However, we are bit overextended so it is kind of difficult to put a lot of money to work now. If you are already long of the market, that’s one thing, but the jump in now would be rather reckless. Having said that, it is closing at the top of the range, so that does suggest that there is more bullish pressure to come.

S&P 500 Video 23.10.17

I think that the 2550 level is supportive, but even more supportive is the 2500 level. Pullbacks that show signs of a bounce or support should be thought of as the value that we can take advantage of, and that I think that the next target will be the 2600 level above. The uptrend is very strong, so I have no interest in shorting this market, as the S&P 500 is in the middle of earnings season and enjoying very good results. The market continues to look overall positive, but again, I think that the market has gotten ahead of itself lately. A couple of negative candles should be healthy for this market, I’m a bit cautious to try to front run that trade. In fact, I wouldn’t even be bothered to sell that move, to simply wait for an opportunity to start going long again as there are so many reasons to think that this market will continue the overall move.