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Major US Indices, Forecast for The Week of October 23, 2017, Technical Analysis

Christopher Lewis
S&P 500 The S&P 500 initially fell during the week but found enough support at the 2540 handle to turn things around and rally significantly. Friday was a very bullish session, as we had got word that there is the possibility of tax cuts being pushed out of Washington DC now, and it’s likely that we will … Continue reading Major US Indices, Forecast for The Week of October 23, 2017, Technical Analysis

S&P 500

The S&P 500 initially fell during the week but found enough support at the 2540 handle to turn things around and rally significantly. Friday was a very bullish session, as we had got word that there is the possibility of tax cuts being pushed out of Washington DC now, and it’s likely that we will continue to see bullish pressure in the S&P 500. However, we are bit overextended so it is kind of difficult to put a lot of money to work now. If you are already long of the market, that’s one thing, but the jump in now would be rather reckless. Having said that, it is closing at the top of the range, so that does suggest that there is more bullish pressure to come… Read More

Dow Jones 30

The Dow Jones 30 broke out to the upside during the course of the week, closing towards the top of the range. If there was ever a poster child for an overextended market, the Dow Jones 30 certainly looks as if it is right now. Because of this, unless you are already involved in the market, I would be cautious about buying here. However, even though we’re going to pull back soon, I would not be willing to sell this market because there is so much in the way of bullish pressure underneath. Given enough time, I think that the market could find plenty of support underneath, so being patient and waiting for value in the Dow Jones 30 should be the best way to trade this market going forward as earnings continue to be good… Read More

NASDAQ 100

The NASDAQ 100 initially fell during the week but found enough support at the 6050-handle underneath to turn around and form a massive hammer. The hammer, of course, is a very bullish sign, and with the NASDAQ 100 underperforming slightly, it could be that money is about ready to flow back into this market. If we break above the top of the hammer for the week, we should continue to go even higher. I believe that the bottom of the uptrend currently is the 6000 handle. Ultimately, the volatility should continue, but I certainly think that buying on the dips is probably the best way to trade this market, and I have no interest in shorting anytime soon. I still have a target of 6200, and I think we are trying to work our way towards that level. Shorting isn’t possible at this point… Read More

This article was originally posted on FX Empire

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