Major US Indices, Forecast for The Week of October 16, 2017, Technical Analysis

S&P 500

The S&P 500 rallied during the week, slicing above the 2550 level, and showing significant strength because of that. I believe that it’s only a matter of time before the rally, although we are starting to get a little bit on the parabolic side now. I think that pullbacks are healthy, and I think that there should be a significant amount of support at the 2500 level. Longer-term traders are looking for value to take advantage of, as they have more than once over the last couple of years. I believe that the 2400 level underneath is the bottom of the uptrend, so it’s not until we break down below there that I would be concerned about the longer-term move… Read More

Dow Jones 30

The Dow Jones 30 rallied again during the week, testing the 22,900 level. The next obvious resistance barrier will be the 23,000 handle, and although I think we get there, it would not surprise me at all to see a little bit of a pullback. After all, we are starting to get a bit parabolic, but quite frankly I have no interest in trying to short this market. I think a nice healthy pullback should be ahead of us, and that should be a very good opportunity for longer-term traders to take advantage of value in a market that has no reason to fall recently… Read More

NASDAQ 100

The NASDAQ 100 initially fell during the week but found enough support below the 6050 level to turn around and form a bullish candle. The bullish candle suggests that we are going to go back towards the 6100 level again, and then breakout towards the 6200 level. The recent measured move suggested that we were going to the 6200 handle, and that is my target. I also believe we go higher than that, but I also recognize that we are bit overextended, and you can see how difficult it was to break above the 6000 level… Read More