Major US Indices Forecast, August 1, 2017, Technical Analysis

S&P 500

The S&P 500 initially rally during the day on Monday, but found the 2475 region to be a bit too resistive to continue. We pulled back significantly, but I think there is plenty of support just underneath. The market will continue to be very volatile though, because quite frankly this is a market that continues to show a significant amount of choppiness as many traders I speak to are very concerned about these high levels. Having said that, I think we will see buyers return though, as we continue to in general. With this, it could be a short-term buying opportunity, but I would not be a long-term holder of this market unless you can trade a very small position… Read More

Dow Jones 30

The Dow Jones 30 when higher during the day on Monday, as we reached towards fresh, new highs at the 21,900 level. The market looks likely to continue to find buyers on dips, as we go looking towards the 22,000 level above. This is a market that has been in a nice gentle uptrend over the last several days, so therefore I like buying pullbacks. These pullbacks offer value the traders can take advantage of, and I think that once we break above the 22,000 level, we will then go looking for the 22,500 level over the longer term… Read More

NASDAQ 100

The NASDAQ 100 went sideways in general on Monday, and then broke down below the 5900 level. We do have a significant amount of support just below though, so I think that it’s only a matter of time before the buyers return. I would probably step on the sidelines when it comes to the NASDAQ 100 and preferred to trade the Dow Jones 30, as tech stocks have seen a bit of an overreach during the last several months. The NASDAQ 100 of course has been a leader, but perhaps it’s time for the Dow Jones 30 to be that very same leader in the United States. Either way, I am bullish of both indices, but I recognize that the Dow Jones 30 looks likely to outperform based upon the recent action… Read More