US Indices Forecast, April 26, 2017

E-mini S&P 500

June E-mini S&P 500 Index futures are trading lower and inside yesterday’s range. The price action indicates investor indecision and impending volatility. Traders may not be willing to keep buying at current price levels ahead of today’s major tax reform announcement by the Trump Administration… Read More E-mini S&P 500 E-mini S&P 500 Forecast

E-mini NASDAQ-100

June E-mini NASDAQ-100 Index futures are trading marginally higher on Wednesday. The market is basically flat-lining ahead of today’s major tax reform announcement from President Trump.

There is no resistance so the rally is being driven by momentum and aggressive buying. The index is up eight days from its recent bottom which puts it in the window of time for a potentially bearish closing price reversal top. This chart pattern is not likely to lead to a change in trend, but it could lead to a 2 to 3 day correction. It will send a signal that the selling is greater than the buying at current price levels… Read More E-mini NASDAQ-100 Forecast

June E-mini Dow Jones

The June E-mini Dow Jones Industrial Average surged to its highest level since March 2 earlier in the session, before turning lower shortly before the regular session opening. Today is only the fifth day up from the recent main bottom, however, when a market goes vertical, it almost always ends with a dramatic closing price reversal top. And that what we’ll be looking for today.

Given that the market is being driven by strong earnings and anticipation of President Trump’s long-awaited tax reform plan, we could be looking at a “buy the rumor, sell the fact” situation. In other words, we believe the tax plan has been factored into the price so investors may decide to take profits after its released especially if the plan disappoints.

We’ve already had the higher-high, so all we need is a lower close to set up the Dow for a possible 2 to 3 correction… Read More June E-mini Dow Jones Forecast