S&P 500 Price Forecast February 20, 2018, Technical Analysis

The S&P 500 drifted a little bit lower during the trading session on Monday, as we continue to see the market bounce around the 2725 region. The 2700 level underneath is very supportive though, and I think this could end up being an opportunity. On the other side of the equation, there is a lot of noise just above that could come into play. However, remember this was electronic trading in the futures market and the CFD market that came into play more than anything else. Actual underlying trading was closed for Presidents’ Day. · FX Empire

Christopher Lewis

Updated Mon, Feb 19, 2018, 9:49 PM

The S&P 500 has drifted just a bit lower during the trading session on Monday, and relatively quiet trading. I believe that the market should continue to go higher though, but we may need to pull back occasionally to pick up momentum. I look at the 2700 level should be supported, as it was once resistive. There is a bit of noise just above current trading though, which I believe is focused on the 2750 handle. A break above 2760 allows this market to continue going higher, but I think the recent breakdown suggests that it’s only a matter of time before that happens. Longer-term, I believe that this market is still looking towards the 3000 handle above, and that is my longer-term target for the year.

Pullbacks offer opportunities to pick up a little bit of value and add to a longer-term core position. If we were to break down below the 2650 level, then I think the 2600 level will come into play. It is not until we break down below the 2500 level that I would be concerned about the overall uptrend of the S&P 500. I recognize that we have recently seen a brutal selloff, but quite frankly that was a lot of “hot money” that had jumped into the marketplace, and a lot of times that needs to get wiped out before you can get a longer-term move.