Last year I wrote my 2017 forecast for SPX500 and it worked quite good. Now I am not so convinced it could arrive to 3000 points this year 2018. Let’s see technically what is happening. SPX500 index has grown from February 2016 at
SPX500 index has grown from February 2016 at 1800 points up to 2603, a new historical level last Friday, Nov 24. No seems to want to slow down, but we can analyze the possible levels from which reversal could start. 2867
On the monthly chart, extreme overbought conditions may announce that reversal is coming as long as resistance at 2400 won’t be broken soon. Here are the levels to trading this month coming.
As pointed out in my April SPX500 forecast issued at the end of last month, the bearish trend has started and may increase next days as long as resistance at 2365 won’t broken the upside.
On the monthly chart, SPX500 level is situated above all moving averages but RSI and stochastic give a dangerous signal in a very overbought territory. So in my view correction is coming.