Major US Indices Forecast, November 8, 2017, Technical Analysis

S&P 500

The S&P 500 initially tried to rally during the day on Tuesday but found the 2600 level to be far too exhaustive to continue going higher. I believe that the market should continue to find a bit of resistance above because quite frankly we have been overbought for quite some time. I think that a pullback is healthy and that breaking above the 2600 level should be difficult because quite frankly we have not had a significant pullback in the S&P 500 for what seems like ages… Read More

Dow Jones 30

The Dow Jones 30 fell significantly during the day on Tuesday, breaking below the 23,500 handle. This is an area that should be supportive, but I think it also extends down a couple of hundred points. I’m waiting to see some type of bounce, or perhaps a move back above the 23,500 level before I would start to buy. The market should continue to find buyers underneath, near the 23,350 level, and perhaps even lower than that. Longer-term, I anticipate that the Dow Jones 30 will eventually reach the 25,000 handle, but that probably won’t be until spring of 2018. I have no interest in shorting unless of course, we were to break down below the 23,000 handle… Read More

NASDAQ 100

The NASDAQ 100 has fallen a bit during the day on Tuesday, reaching down towards the 6300 level. We are testing the 24-hour exponential moving average, and of course the sideways support at 6300. I think that we could probably continue to go the little bit lower though, and quite frankly I would love to see that, as it would offer value in a market that has been very bullish. Longer-term, I believe that we will go looking towards the 6500 level above, which would be much more structural resistance… Read More