Major US Indices, Forecast for The Week of October 30, 2017, Technical Analysis
S&P 500
The S&P 500 initially fell during the week, testing the 2550 handle. We found enough support there to turn things around though, and by the end of the trading day on Friday, we had formed a massive hammer. This is quite outstanding and astonishing, as we have gone straight out for so long. I think at this point, you obviously cannot be a seller, but we are overbought by just about any metric you use. The earnings season was very good for the US, and of course the GDP was stronger than anticipated, so you can make the argument for upward pressure, but eventually, you must run out of buyers, or at least volume. I find it very difficult to go long of the market now, but I certainly cannot short it… Read More
Dow Jones 30
The Dow Jones 30 had a slightly positive session during the week, as we continue to extend our gains to the upside. It looks as if the 23,500 level is the next target, but quite frankly this point I think the market has gotten a bit ahead of itself, and quite frankly we need to pull back to build enough momentum and more importantly, the value in the market, to start buying. I think the 23,000 level is supportive, but quite frankly I can envision a pullback to the 22,000 level and still be bullish. This is a market that continues to be overdone, and although bullish, we desperately need to find value… Read More
NASDAQ 100
The NASDAQ 100 initially fell during the week but turned around as we bounced from the 6000 handle. We have now broken above the 6200 level which was my target based on an ascending tribal the guy broken to the upside. It looks like we could go higher, but quite frankly we desperately need some type a pullback to offer value in a market that has been so overdone. Given enough time, I think that pullbacks should continue to attract a lot of attention, as the uptrend is very much intact. However, I think that we’re going to see the stock markets pull back a bit, but that only offers value the people are willing to take advantage of… Read More
This article was originally posted on FX Empire