Dow Jones 30 and NASDAQ 100 Price Forecast January 22, 2018, Technical Analysis

Dow Jones 30

The Dow Jones 30 initially tried to rally during the Friday session, but as you can see we pulled back a little bit to try to find buyers. I think eventually the buyers will return, and I think that we will go to the 26,150 level. There is a significant amount of bullish pressure underneath, and therefore I think it is much easier to buy this market than to sell it. In fact, I have no scenario in which a willing to sell the market right now, as corporate earnings continue to do quite well. A shrinking US dollar of course helps exports, as goes the typical correlation.

Dow Jones 30 and NASDAQ Index Video 22.01.18

NASDAQ 100

The NASDAQ 100 initially tried to rally during the Friday session but then turned around to pull back as we reached a fresh, new high. The 6850 level is a bit resistive, and a pullback at that point looked reaching towards the uptrend line, an area that seems to be very supportive. Looking at the up trending line, it forms an ascending triangle, and that tells me that the market is trying to rally. Beyond that, the hourly chart is crossing over just above the oversold condition, so I think we will eventually break out and go looking towards the 6900 level. I recognize that these pullbacks offer value, just as the algorithmic traders have programmed their robots to deal with this market.