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Major US Indices, Forecast for The Week of December 4, 2017, Technical Analysis

By:
Christopher Lewis
Published: Dec 3, 2017, 09:28 UTC

S&P 500 The S&P 500 has been very volatile over the week, initially being stronger than anticipated, but only finding Friday to be even worse, as

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S&P 500

The S&P 500 has been very volatile over the week, initially being stronger than anticipated, but only finding Friday to be even worse, as General Flynn is set to testify against the White House and the Russian scandal. Longer-term, it’s likely that the market will continue to go to the upside, especially considering that towards the end of the day on Friday we saw more buying. Pullbacks at this point should find plenty of support at the 2600 level, which was previous resistance. If we broke above the 2650 level, the market should go higher than that as well. We have gotten a bit overextended though, and we are most certainly in the oversold section of the Stochastic Oscillator so that being said it’s likely that the market will eventually find some reasonable back… Read More

Dow Jones 30

The Dow Jones 30 broke out during the week, breaking above the 24,000 level again. By closing towards the top of the candle, it looks as if we are ready to continue the bullish run higher, and currently, it looks as if the 23,500 level is a bit of a floor. Obviously, algorithmic traders come in and pick up every short-term pullback, and I think that there is plenty of support at various levels underneath, so given enough time I think that the market will eventually go looking towards the 25,000 level, which is the next major round number. Expect the “Santa Claus rally” to come in full effect, but we do have a lot of volatility due to the General Flynn announcement during the Friday session that he was willing to testify against the White House… Read More

NASDAQ 100

The NASDAQ 100 got absolutely pummeled at one point during the week but turned around to form a nice-looking hammer. The hammer is pressing against the 6400 level, and it looks very likely that we are going to see this market go looking towards the 6500 level given enough time. Pullbacks remained buying opportunities as algorithmic traders jump into the marketplace, and continue to drive to the upside. I think that the 6000 level underneath is the “bottom or floor” of the overall trend. This is a market that continues to be very noisy, but quite frankly it’s likely that the algorithms will continue to pick up any time we see value as robots has taken over Wall Street trading. Keep your position size very small, if nothing else to protect your account… Read More

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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