Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

S&P 500 Forecast: Index Reaches All-Time Highs

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

The 4500 level will cause a little bit of noise, but eventually we will break through that just as we have at other big figures.

The S&P 500 has rallied a bit during the course of the trading session to break above the 4450 handle, as we are making our way towards the 4500 level. The market has been bullish for some time, and as a result it makes a certain amount of sense that we would see a continuation of this trend going forward. This will be especially true as the market simply looks at every pullback as a potential buying opportunity. Underneath, the 4400 level would be a major support level on shorter-term time frames, but if we were to break down below that level, then I think we go looking towards the 50 day EMA as well as the uptrend line.

If we can break down below the uptrend line, then it is possible that I might be a buyer of puts, as I would anticipate that the next target would be the 4200 level, possibly even followed by the 4000 level which of course is a large, round, psychologically significant figure and an area that would take a lot of effort to break down below. In fact, I believe that the 4000 level will more than likely be the “hard floor in the market” for the uptrend. This is further strengthened by the idea of the 200 day EMA sitting in that same general vicinity.

If we were to rally at this point, I think it is more or less a “buy-and-hold” type of market, but I would not look for bigger moves, simply because we are in the wrong time of the year to think that we would see a lot of volume jump into this market. Furthermore, if we continue to see the Federal Reserve look likely to keep the spigots open, then there is no reason to think that the stock markets will change direction anytime soon, but even if we do pull back a bit, I suspect that the buyers will be waiting to pick up any opportunity that they see. This has been the way the market has behaved for the last 13 years, and I do not see that changing in the next few days. I believe that the 4500 level will cause a little bit of noise, but eventually we will break through that just as we have at other big figures.

S&P 500

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews