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S&P 500 Price Forecast February 26, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Feb 24, 2018, 04:12 UTC

The S&P 500 rallied during the trading session on Friday again, gaining over 0.75% by the time we started to close out the day. I think that the market should continue to be one that investors look at as value on dips, and I think that the overall attitude of the market should continue to be positive.

S & P 500 daily chart, February 26, 2018

The S&P 500 bounced from the 2700 level couple of days ago and has continued to show signs of support. I think that the 2750 level above the should be the initial target, but I think that given enough time we should continue to go higher than that. The S&P 500 continues to attract algorithmic traders, and I don’t think that’s going to change anytime soon. I look at this market as one that should continue to climb towards my longer-term target of 3000, but that’s obviously something that’s going to take a while to accomplish.

I look at the 2700 level underneath as the short-term floor, but I have a longer-term “basement” at the 2500 level. Ultimately, if we can stay above the 2500 level, I have no interest in shorting this market. I believe that the algorithmic traders continue to look at pullbacks of 1% or more as an opportunity to pick up stocks cheaply, and therefore it gives you a bit of a barometer as to where to trade. The 2800 level above will also be a target, as the S&P 500 tends to have a reaction every 50 points. The markets look as if they have been basing for some time, at least over the last week. This basing pattern suggests to me that we are ready to go higher rather soon, and that you should keep an eye on this index.

S&P 500 Video 26.02.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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