Dow Jones 30 and NASDAQ 100 Forecast October 30, 2017, Technical Analysis

Dow Jones 30

The Dow Jones 30 had a very volatile session during the Friday session, breaking out towards the 23,450 level, pulling back to the 23,350 level, and then bounced again. The market looks very volatile and bullish, but I think we are bit overextended when you look at the longer-term charts. I believe that the markets should continue to be one that looks to be bought, but I think that the current level is a bit too high and doesn’t offer value. I think that we could breakout, but this is a short-term buying opportunity at best. I would prefer to see the market pull back significantly so I can pick up value, and therefore I think that the market is probably best approached with caution, to say the least.

Dow Jones 30 and NASDAQ Index Video 30.10.17

NASDAQ 100

The NASDAQ 100 exploded to the upside, breaking above the 6200 level. That was the target that I had longer-term from the ascending triangle that got broken above several weeks ago, and now it has been fulfilled. I believe that if we pull back from here, it’s likely that we will find buyers underneath, especially near the 6100 level and obviously the 6000 level. I think we desperately need to pull back, although the NASDAQ 100 isn’t as overbought as the Dow Jones 30. The market tends to go back and forth between indices, and sector rotation, and I think we may be seeing money flow back into technology overall as we had several major companies beat earnings estimates over the last 48 hours. Given enough time, I think we do reach towards the 6300 level, but look for value, in the form of pullbacks as we gained so much in such a short amount of time.