Major US Indices, Forecast for The Week of October 9, 2017, Technical Analysis

S&P 500

The S&P 500 rallied during the week, reaching towards the 2550 handle above. The market looks as if it is going to be resistive, and I think that if we drop from here, there should be plenty of buying underneath to keep this market going higher. The 2500 level underneath is a previous resistance barrier, so it should not cause a bit of support. The market has been in a strong uptrend, and because of this, I think that selling is all but impossible. Given enough time, I fully anticipate that the buyers will be attracted to dips, and I think that the S&P 500 will continue to lead the way as the stock traders in New York have been rotating out of technology and going into industrials as well as financials… Read More

Dow Jones 30

The Dow Jones 30 broke out during the week, slicing through the 22,500 level. This is a very bullish sign, and the candle closing towards the top, of course, is very bullish as well. Ultimately, the Dow Jones 30 looks very likely to continue going higher, and I think that the 22,000-level underneath should continue to be a “floor” in this market. I believe pullbacks are valued, as money is flowing into industrials based upon action seen on Wall Street. We have been in a longer-term uptrend, and I think we continue to see plenty of opportunity on pullbacks as value. Longer-term, I believe that we are going to go to the 23,000 level above… Read More

NASDAQ 100

The NASDAQ 100 broke out during the week, slicing through the 6000 level finally. This is an area that has caused quite a bit of resistance in the past, but now that we have broken above there I think the market is free to go much higher. We have been grinding our way to the upside for some time, building up the necessary momentum that was needed. I think the 6000 level should offer support now as it was resistive, and therefore I think that the Wii plenty of buyers looking to get involved on these dips. I suspect that the 5900 level will also offer a floor, so given enough time I think we will continue to reach towards the 6100 level, perhaps even the 6200 level… Read More