Major US Indices Forecast, October 3, 2017, Technical Analysis

S&P 500

The S&P 500 had a reasonably quiet session on Monday as we continue to tread water just below the 5.5 handle. We did try to break it really in the trading session but found sellers above that level. It is perhaps a market that is a bit overextended currently, so pullbacks would probably be building momentum to the upside. I think this is a good thing for the overall health of the market, but clearly, we are in an uptrend in selling is a very difficult thing to do. I think that given enough time, we should go looking towards the 2550 handle, especially considering how much bullish pressure we had seen late on Friday… Read More

Dow Jones 30

The Dow Jones 30 initially rallied on Monday, but then pulled back a couple of times as the 22,500 level offers resistance. It looks as if we can break above there, the market should continue to go much higher. At that point, I anticipate that the market goes looking for the 23,000 level above, and the pullbacks are the markets way of trying to build up momentum to finally break out. I have no interest in shorting the Dow Jones 30, as it has been rather bullish as of late as the sector rotation out of technology continues. I believe that the Dow Jones 30 will continue to outperform most other indices, but at the end of the day all US indices are going higher, so I don’t have any interest in shorting either way… Read More

NASDAQ 100

The NASDAQ 100 wells relatively flat on Monday, but we did try to break out at one point. Remember though, the NASDAQ 100 is heavily influenced by just a handful of technology stocks, so they have an extreme amount of influence on this index. With that in mind, I think that it’s probably best to stand on the sidelines, perhaps looking to buy the NASDAQ 100 at lower levels based upon value. I do think that we go higher given enough time, but it’s probably going to be volatile in this index, and it will almost certainly lag behind the Dow Jones 30 and the S&P 500… Read More