Major US Indices Forecast, October 23, 2017, Technical Analysis

S&P 500

The S&P 500 rallied significantly during the session on Friday, but then pulled back a little bit only to find more buying pressure. Ultimately, we closed near the 2575 handle, and I think that the market should go looking towards the 2600 level after that. Pullbacks offer value, and eventually, we should break above the 2600 level. Ultimately, I think that the 2550 level is the short-term floor in the market, and the S&P 500 should continue to benefit from a stronger than anticipated earnings season. I think that the pullbacks offer value the people will be willing to take advantage of, as we are in such a strong uptrend. Ultimately, this is a market that is difficult to short, and really at this point, I don’t see much way to do that… Read More

Dow Jones 30

The Dow Jones 30 significantly rally during the day on Friday, reaching to fresh, new highs. The market continues to be bullish overall, and this explosive move has gotten a bit overextended. Because of this, looking for buying opportunities at lower levels as it gives an opportunity to pick up value. I don’t have any interest in shorting though, even though I think that we are going to drop down from here. The 23,000-level underneath is going to be massive support, so it’s not until we break down below there that I would become remotely concerned. Beyond that, I think that the market could go to the 24,000-level next, with a stop at the 23,500 level between here and there… Read More

NASDAQ 100

The NASDAQ 100 broke to the upside during the day on Friday, reaching towards the 6125 handle. We pull back from there, and it looks as if the support has come back into the market near the 6100 level. When you look at the longer-term charts, there’s an ascending triangle that we broke out of once we sliced through the 6000 handle, and now I think that we are going to fulfill the extension of that consolidation area, which has this market looking towards the 6200 level. That’s not to say that we can’t pull back from here, but I think the given enough time we will find buyers… Read More