Major US Indices Forecast, August 2, 2017, Technical Analysis

S&P 500

The S&P 500 initially rallied in the CFD markets during the day on Tuesday, but then turned around almost immediately as the Americans came back to work. We have seen this recently, that the Americans will sell off the stock markets, only to have the algorithmic traders coming later to pick up the pieces. We continue the uptrend channel, and it looks as if we are going to go looking towards the highs again, and I believe that were going to go looking towards the psychologically important 2500 level. I have no interest in shorting this market, and when we pull back I look at it is value that’s presented itself. Am a buyer of dips, and it has worked quite nicely over the last several sessions… Read More

Dow Jones 30

The Dow Jones 30 rally during the day on Tuesday, reaching towards the 22,000 level the pulling back as the area offered a bit of psychological resistance. It looks as if we are starting to see a bit of support though, so I think that we will continue the uptrend given enough time. Pullbacks should continue to offer buying opportunities as they represent value more importantly. The 22,000 level is a psychological resistance barrier, but I think that there is nothing particularly interesting about the level to keep the market from going higher. Earnings season has been good, and that should continue to push this market to the upside… Read More

NASDAQ 100

The NASDAQ 100 broke above the 5900 level during the day, but then pulled back again. However, when I look at this chart it looks very similar to the uptrend channel that we see in the S&P 500. Because of this, I believe that the buyers will return, and that it’s only a matter of time before they pick up value below. I think that the market is a “buy on the dips” market, unless of course we break down below the 5850 level, which for me would be catastrophic. In the meantime, I think that short-term bursts to the upside is probably about as good as it gives, as we continue to await the vital jobs number on Friday… Read More