Major US Indices Forecast, November 16, 2017, Technical Analysis

S&P 500

The S&P 500 drifted lower initially during the trading session on Wednesday and then eventually fell rather steeply towards the 2555 level. However, we have bounced significantly since then, as algorithmic trading comes back into play. The question now is whether we can break above the 2575 handle. When I look at this chart, I noticed that the 24-hour exponential moving average is starting to turn lower, and of course, at the beginning of the 24-hour session, we had seen the stochastic oscillator start to cross in the overbought section. I think that this signifies that we will eventually drift lower, and at that point go looking for more significant support at perhaps the 2550 handle… Read More

Dow Jones 30

The Dow Jones 30 fell immediately during the trading session on Wednesday, reaching down as low as the 23,250 region, before bouncing significantly. However, the 24-hour exponential moving average is offering dynamic resistance, and I have marked on the chart something that I noticed yesterday, the stochastic oscillator crossing in the overbought condition, which shows a significant amount of stagnation. I think that this market, much like many other stock markets, needs to pull back to find value underneath… Read More

NASDAQ 100

The NASDAQ 100, of course, did the exact same thing, as algorithms turned the market back around near the 6225 level. There is a significant amount of resistance above, and extending to the 6300 level, so I don’t have any interest in trying to go long of the market until we were to break the 6325 handle, something that I don’t expect to see today. I think that the market probably continues to drop a bit, perhaps finding enough support at the 6200 level to turn things around. During the past year or 2, the NASDAQ 100 typically will lead the other US indices higher, so I’m waiting to see this market rally as it is a bit of a tertiary indicator for my other stock market indices in America… Read More