Major US Indices, Forecast for The Week of November 20, 2017, Technical Analysis

S&P 500

The S&P 500 fell during the week but found enough support at the 2550 level to turn around and form a hammer. The hammer, of course, is a bullish sign, and we continue to form them just above the 2500 level. While this market is overextended by just about every metric I use, not to mention the fact that the stochastic oscillator has crossed over in the overbought condition, it’s become obvious that the 2550 level is a major support level. When markets reach this type of overextension, one of 2 things will typically happen: we would either pull back significantly to find enough value to go long again, or we will go sideways for a while… Read More

Dow Jones 30

The Dow Jones 30 fell a bit during the week, as we continue to stagnate underneath the 23,500 level. I think a pullback from here could make some sense, with the 23,000-level underneath being a bit of a “floor.” That floor giving way could send this market even lower, perhaps down to the 22,500 level after that. The market is a bit overbought as the stochastic oscillator has been crossing, but quite frankly I think that it’s a market that should remain bullish longer term. I think we are waiting for the US Congress to pass some type of tax bill, and as soon as it does, we could continue to go higher… Read More

NASDAQ 100

The NASDAQ 100 fell significantly during the week, reaching down to the 6200 level. We bounce from there to form a bit of a hammer, and a break above the top of the hammer should send this market much higher. The NASDAQ 100 has gotten a bit overextended, and that the market should continue to go towards the 6500 level if we can build up the necessary momentum. The NASDAQ 100 typically will lead the way for other US stock indices, so I expect to see that happen eventually… Read More