S&P 500 Price Forecast October 25, 2017, Technical Analysis

The S&P 500 rallied a bit during the day on Tuesday, as we got back some of the losses from the previous session. However, I think the most important thing to pay attention to on this chart is the 2563 level. That level should act as support, but if it doesn’t, the market could find itself going down to the 2560 handle, and then the 2550 level. We are in the middle of earnings season, so it’s likely that we will continue to see a lot of volatility. Longer-term, I fully anticipate seeing this market go to much higher levels, but we have gotten a bit overdone as of late, and that invites pullbacks. Earnings season is a perfect time to see some type of shock that brings the market back down, but I think any of that should be temporary at best.

If we did break down below the 2550 handle, this could be the beginning of something more significant, but quite frankly I think that we are more likely to break above 2600 before doing so, and I continue to think the dips offer buying opportunities. From the resiliency of the uptrend, I think the market feels the same way, as algorithmic traders seem to be oblivious to any type of danger out there. Longer-term, I anticipate that the market is going to go looking towards the 2750 level, and beyond.

S&P 500 Video 25.10.17

Financials are going well, and that, of course, helps the S&P 500, and of course, we also had several other indices around the world do reasonably well during the day, having a bit of a “knock on effect” when it comes to the S&P 500. There are several ways to play this uptrend, which recently I have been selling puts to take advantage of the stubborn bullishness.