S&P 500 and NASDAQ 100 Forecast - 15 February 2016

S&P 500

The S&P 500 broke higher during the course of the session on Friday, but we still have plenty of resistance above that could turn this market right back around. Because of this, we are simply waiting to see whether or not there is an exhaustive candle in order to start shorting. We have no interest whatsoever in buying this market, at least not until we break above the 1950 level. That is very unlikely to happen, so we are simply waiting for an opportunity to start shorting this market as it looks so soft. On top of that, most stock markets around the world look very vulnerable, and at this point in time we don’t think that the S&P 500 going to be any different.

SP500

NASDAQ 100

The NASDAQ 100 of course rose as well, but is still well within the consolidation area that we have been in for some time. Because of that, we believe that it’s only a matter of time before the sellers come back into this market and push the NASDAQ 100 lower. I do not like the idea of buying this market at all right now, just as I feel the same about stock markets in general. There is a huge cluster of resistance above the 4100 level so I will simply wait to see an exhaustive candle above that so I can start selling as we should continue to bounce around between the 3900 level on the bottom and the 4100 level on the top.

At this point in time, it will probably take a lot less to push the markets lower than it will to push them higher as far as economic announcements or headline shocks are concerned. Because of this, I still believe that it is much easier to simply look for selling opportunities as there has been so much in the way of concern.

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.