S&P 500 Technical Analysis for today and for the week of August 25, 2014

Prices are aiming to extend upward after clearing resistance in the 1985.30-91.40 area marked by the 50% Fibonacci expansion and the July 24 high, with the bulls targeting the intersection of a formerly broken channel floor and the 61.8% level at 2006.80. A further push beyond that aims for the outer boundary of the index’s long-term uptrend at 2023.50. Alternatively, a turn back below 1985.30 targets the 38.2% Fib at 1963.70.

S&P 500 forecast for the week of August 25, 2014

The S&P 500 as you can see had a very positive week, and we actually broke out above the resistance at one point. However, we did pullback a little bit during the session on Friday, so we haven’t quite technically broken out yet. In the end though, we believe that this market should continue to be strong and that should continue to offer plenty of buying opportunities every time we pullback, and of course a break above the 2000 level which of course is a large, round, psychologically significant number.