Major US Indices Forecast, August 10, 2017, Technical Analysis

S&P 500

The S&P 500 gapped lower at the beginning of the session on Wednesday, but it looks as if we are trying to close that gap again. The 2460 level below continues to be massively supportive, and most certainly the 2450 level will be. The market looks likely to go looking towards the 2500 level over the longer term so these dips should be buying opportunities. I think that pullbacks offer plenty of value, as the algorithmic traders continue to go back and forth in what has been a very dull market. Unfortunately, volatility will pick up, and we don’t know which direction yet. However, there is the old expression “never short a quiet market”, mainly because the volatility tends to pick up to the upside driving prices higher… Read More

Dow Jones 30

The Dow Jones 30 went sideways during the session on Wednesday, hugging the 22,000 level after gapping lower. This is a market that looks to be well supported just below though, so I am a buyer on these dips. I think we will go to the 22,150 level above, and a lot of the negativity is due to the noise coming out of the Korean peninsula. That will fade, and once it does the market will continue the move to the upside. If we break down below the 21,900 level, then I think we could have more momentum to the downside, but I don’t see that happening… Read More

NASDAQ 100

The NASDAQ 100 initially gapped lower and then fell significantly. However, we found enough support at the 5850-level underneath. We bounced enough to fill the gap, and it now looks as if are going to continue to climb. I believe that the NASDAQ 100 continues to find plenty of buyers, as we have a bullish overtone to the market, and of course we continue to see algorithmic traders jump into the market and lifted as the robots are pushing the markets back and forth in a grind sideways… Read More