S&P 500 and NASDAQ 100 Forecast - 20 April 2017

S&P 500

The Wednesday session initially tried to rally but turned around to form a bit of a shooting star during the day on Wednesday, showing signs of exhaustion. However, we are in the middle of earnings season so I’m not too concerned about this. This is a market that will more than likely grind sideways in the meantime, trying to build up enough momentum to go higher. I would however point out that the 20-day moving average is starting to cross below the 50-day moving average, which of course is a sign. However, I believe that the 2300 level underneath is essentially the “floor” in the market, and therefore I think it’s only a matter of time before we bounced and continue the longer-term uptrend. However, we are currently struggling.

SP 500

NASDAQ 100

The NASDAQ 100 rallied during the day on Wednesday, turning around after initially rally in. Ultimately, I believe that the market looks healthier than the S&P 500, so I believe that it’s only a matter of time before we continue to the upside, so pullbacks could offer buying opportunities. The 50-day exponential moving average is just below and of course I believe that the 5300 level is massively supportive. Ultimately, I believe that the market should reach towards the 5500 level above, but it’s going to be a choppy affair as the earning season of course is always influential.

I think we will eventually break above the 5500 level, but the market needs to take a break in the meantime in order to build up enough momentum. Currently, the NASDAQ 100 has been one of the more reliable indices that I follow, and therefore I think if any of them are going to take off to the upside and the short-term, it will be this one. I have course will use this as a tertiary indicator on one whether the S&P 500 is going to continue to go higher.

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.