S&P 500 Price Forecast February 8, 2018, Technical Analysis

The S&P 500 has rallied after initially trying to dip on Tuesday, as we continue to see a lot of volatility in the stock markets. The market is likely attracting a lot of value hunters, as we have seen such a massive selloff as of late. I believe that ultimately, we will see the markets reach the highs again, it’s just that the market had gotten ahead of itself in the meantime. I think that value hunters are starting to come back in based upon the fact that the corporate profits are still strong, and of course the US dollar has been selling off for most of the year. By breaking above the 2700 level, that is a significant “shot across the bow” of sellers, and I think that we will continue to see money jump back into this market that was scared out of it recently.

It’s not until we break down below the 2500 level that I would be concerned, and we are far from there now. I think that the market is much more likely to go reaching towards 2800 than 2600. The hourly chart looks as if it is a “buy on the dips” scenario, which it had been for quite some time. My longer-term target is still 3000, and quite frankly this pullback was necessary to attract money. At one point, we had to ask ourselves who was left to buy? We now know that plenty of people will be coming back into the market, so I think that higher pricing is only a matter of time.

S&P 500 Video 08.02.18