S&P 500 and NASDAQ 100 Forecast - 9 September 2016

S&P 500

The S&P 500 had a relatively negative day during the session on Thursday, but we are still essentially in the middle of the consolidation area that we’ve been trading in for 2 months now. I do believe that every time we pullback, the market looks at it as potential value and that we will eventually break out to the upside. I think a lot of this comes down to the lack of volume, as a lot of traders are still away at holiday. Ultimately, I believe that this market is probably going to reach towards the 2250 level, but it may take a while to get there. Short-term selling isn’t even a thought at this point, because quite frankly I don’t have any interest in trying to go against what I believe is the longer-term move. With this, I remain bullish but I also recognize that we need to be very careful.

SP500

NASDAQ 100

The NASDAQ 100 fell during the course of the day on Thursday, testing the 4800 level. I believe there is a significant amount of support just below though, so having said that I feel that it’s only matter time before we get a supportive candle that we can start buying. Eventually, we will reach towards the 5000 handle, which is the longer-term target that I have had for some time. I also believe that the large, round, psychologically significant number of 5000 makes a perfect place for longer-term traders to be aiming for at the moment.

I don’t have any interest in selling, and I do believe that the 4700 level below is massively supportive. I also recognize the same at the 4600 level and of course the 4500 level. Having said that, I would be very surprised if we reached as far as 4600, but a pullback really isn’t much of a surprise to me in general. I just don’t expect a very large one.

NASDAQ 100

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.