The S&P 500 continued its non-stop rally in the first trading week of 2018. It was one of the best first weeks of any past year and the euphoria is palpable. The S&P 500 closed the week at 2,743 and will likely continue its rally into the end of January. The upside target is 2,810, another almost 70 points higher. This target price is calculated by taking the last possible trend line found by connecting the 2009 lows to the 2012, 2013 and 2014 highs. I look at this as a max target because there are literally no other trend lines possible. Based on the momentum in this market, the 2,810 target on the S&P 500 could be seen even this coming week.
Money flow in the new year has been very strong, not only from U.S. investors but from overseas. Global optimism is at a peak as investors flood any asset that is not the U.S. dollar.
