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S&P 500 forecast for the week of February 26, 2018, Technical Analysis

Christopher Lewis

The S&P 500 initially fell during the week but found enough support just below the 2700 level to turn things around and form a hammer. The hammer is a good sign, and if we can break above the top of this hammer, we could to continue the uptrend, perhaps reaching towards the 3000 handle over the longer term. The 3000 level is my longer-term target, but I realize that we have a lot of work to do between now and then. I think that every time the market pulls back, there will be buyers ready to get involved and I also recognize the 2500 level as a potential “floor” in the uptrend. Because of this, I look at these markets as one that will give you an opportunity to get long sooner rather than later, and I think that selling is all but impossible

I suspect that there will be a bit of noise at the 2800 level above, but it will be minor at best. It’s probably something that short-term traders will pay attention to, but quite frankly the average long-term trader won’t even notice it. I think that if we did breakdown below the 2500 level, that would be a significantly bearish move to have short-sellers coming after the S&P 500. The algorithmic traders continue to pick up these dips, so I think that’s going to be a mainstay of this market, at least for the time being. The patient long-term investor should continue to profit.

S&P 500 Video 26.02.18

This article was originally posted on FX Empire

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