I get this question a lot at my wealth retreats or at other speaking engagements: “Where do you think the SP 500 is heading?” Well, sometimes you just need to look at a chart (ie. the price) to give you a little bit of an idea.
If the SP 500 futures break above 2800 and a close above, it probably signals that we will start to see new highs.
Take a look at the chart above. If you look at the 20-week moving average, a close below that morning average, I would be leaning and thinking that we’ll go and test the 2600 over the next few months. I enjoy using the 20-week moving average because it gives me a good idea of the current overall trend. And, as you can see from this chart in 2016 and 2017, that moving average was a good indicator of where the market was trending. So, the three points I am looking at are the 2600, 2800, and the 20-week moving average. This, however, is only looking at price and not taking anything else into consideration, such as fundamental, economic, or geopolitical factors which could push the market one way or the other.