S&P 500 and NASDAQ 100 Forecast - 3 October 2016

S&P 500

The S&P 500 had a very volatile session on Friday, but ended up with a fairly positive candle. It looks as if we are trying to break out above the 2180 handle, but at this point in time it seems to be a bit too exhaustive in that area. Ultimately, I believe that this is a market that will break out to the upside given enough time, and with that being the case I think that every time we pullback you have to think about buying based upon value. The low interest rate environment should continue to propel stocks higher overall, so therefore I am a buyer and not a seller. As long as we stay above the 2120 handle, it’s likely that the buyers will be attracted.

S&P500

NASDAQ 100

The NASDAQ 100 initially fell during the course of the session on Friday, but turned back around to break above the 4840 level significantly. With this being the case, I think that if we break above the 4900 level we are free to go to the 5000 level which of course is my longer-term target if you been reading our articles. Pullbacks should continue to offer value, and with that being the case it’s only a matter time before the buyers get involved.

At this point in time, I have no interest in selling the NASDAQ 100 for much the same reason as not being interested in shorting the S&P 500 as the interest-rate environment is so low right now that money is flowing into the stock markets just due to the fact that there is nowhere else for money to go with no interest rates being available at this point in time. I think that we will eventually break above the 5000 level as well, but that is going to take some serious time.

Nasdaq100

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.