S&P 500 and NASDAQ 100 Forecast - 18 January 2016

S&P 500

The S&P 500 fell during the session on Friday, testing the 1860 level. That is an area that has served as significant support in the past, so if we get a bit of a bounce from here that wouldn’t totally surprise me. However, I recognize that there is a massive amount of resistance somewhere near the 1950 handle, so this point in time I’m just looking for short-term rallies to start selling yet again. With this being the case, I believe that when we start trading again on Tuesday we could get a bit of a relief rally, but the sellers should come back in full force and push this market lower.

There simply seems to be more than enough concern out there to continue to keep the sellers happy in this type of environment, and as a result I can only be one of them as there are no real signs of life when it comes to stock markets.

SP500

NASDAQ 100

The NASDAQ 100 fell during the day on Friday as we continue to see quite a bit of bearish pressure in the stock markets worldwide. I find this a bit disconcerting, because quite frankly we can’t seem to get any type of buying pressure sustained in any of the stock markets that we follow. Because of this, I feel that this market is eventually going to break down.

I recognize that there is a bit of a ceiling at the 4350 level, so any rally at this point in time would have to deal with that. I quite frankly would love to see a rally that I can start selling on an exhaustive candle going forward as it would just simply be a continuation of the downtrend. On the other hand, I could see buying this market but only after we break above the 4400 level, something that isn’t going to happen on Tuesday when trading resumes. (Keep in mind that Monday is Martin Luther King Jr. Day)

NASDAQ

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.