Dow Jones 30 and NASDAQ 100 Price Forecast December 19, 2017, Technical Analysis

Dow Jones 30

The Dow Jones 30 gapped higher at the open on Monday, and then continue to climb for the rest of the day. In fact, it looks like we are trying to target the 25,000 handle, but it’s going to take a while. Pullbacks offer value, as algorithmic traders continue to jump into this market, as the 25,000 level is a large, round, psychologically important figure, so therefore it makes a lot of sense as a target. I believe that the market continues to see a lot of reasons to go higher, and tax reform of course is going to continue to be yet another reason to go higher.

Dow Jones 30 and NASDAQ Index Video 19.12.17

NASDAQ 100

The NASDAQ 100 rallied a bit during the day as well, but then pulled back to find even more support at the 6500 level. Now that we are above the 6500 level, there is a certain amount of psychological support at the 6500 level, as we have reached fresh, new highs. I believe that algorithmic traders will continue to jump into this market on it pulling back as well, so I think that this is value just waiting to happen. I think the 6400-level underneath is the bottom of the most recent move, and I believe that buyers continue to be attracted to this market, padding their returns for the year, as investors will be expecting some type of return. With the lack of liquidity, it’s likely that the moves could be rather sudden during the summer year.