S&P 500 and NASDAQ 100 Forecast - 30 August 2016

S&P 500

The S&P 500 rallied during the course of the session here on Monday, as we continue to go sideways overall. That being the case, the market should continue to grind sideways overall but I think that there is a bit of a bullish overtone to this market, as the US markets continue to enjoy a stronger economy than comparable ones. Ultimately, I think that this market that will reach towards the 2250 level, and perhaps higher than that. I think that pullbacks at this point in time continue to offer quite a bit of support, and with that being the case this is a “buy only” market at this point. The market has been extraordinarily strong until recently, but if you notice, the lows keep getting slightly higher.

SP 500

NASDAQ 100

The NASDAQ 100 rally during the course of the session on Monday, as we continue to test around the 4800 level. We are at the end of the summer though, and having said that it’s likely that the volume just won’t be there in order to make the move yet. I think short-term pullbacks offer buying opportunities, and then we could continue to go even higher, perhaps reaching towards the 5000 level which is my longer-term target. I believe that the markets will continue to find buyers every time we dipped, mainly due to perceived value. I think that even if we fell from here, the 4700 level would offer quite a bit of support as well.

Keep in mind that the NASDAQ 100 will continue to do fairly well due to the fact that at least the United States economy is growing, which is a bit more than you can say for quite a few out there. It’s more or less a “cleanest shirt” situation. 

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.