S&P 500 Price Forecast July 31, 2017, Technical Analysis

The S&P 500 had a very choppy session on Friday, dropping down to the lows from the Thursday session, and then bouncing around. The market looks to be very volatile and quite frankly susceptible to bearish pressure, so I think that if we can break down below the 2460 handle, the market probably goes down … Continue reading S&P 500 Price Forecast July 31, 2017, Technical Analysis · FX Empire

Christopher Lewis

Updated Fri, Jul 28, 2017, 11:20 PM

The S&P 500 had a very choppy session on Friday, dropping down to the lows from the Thursday session, and then bouncing around. The market looks to be very volatile and quite frankly susceptible to bearish pressure, so I think that if we can break down below the 2460 handle, the market probably goes down to the 2450 level. Alternately, we could bounce from here and I think that any type of stabilization by the end of the session on Friday will be looked at as a minor victory. I believe in the longer-term uptrend, so even if we fall from here, it’s very likely that we will find buyers given enough time. The Federal Reserve looks to be very dovish at this point, and I believe that it should continue to be so. The markets showing volatility is a good sign as it shows more participants are starting to express their opinion. This lull in volatility has been very dangerous, as it opens the market to significant surprises which of course shows massive danger.

Buying dips

I continue to buy dips in general, because I believe that there is plenty of value to be had. However, the market should continue to find plenty of reason to celebrate, even though we may be a little bit overdone. I think that the buyers will continue to be a massive influence in this market, and any pullback at this point should be looked at as value as the underlying fundamentals of the stock market are rather strong. I have no interest in shorting until we break down below the 2400 level, which is something that we won’t see any time soon. With this, I remain optimistic but also recognize that it will be very choppy.