S&P 500 and NASDAQ 100 Forecast

16 November 2017 10:54:24 PM

S&P 500

The S&P 500 rallied significantly during the trading session on Thursday, but give back some of the gains late in the day. While this is a very bullish move, I believe that we are still a bit overextended. With the massive resistance at the 2600 level above, I hesitate to start buying at this point. However, on pullbacks that might be interested, especially near the 2550 region. The overall attitude of the market remains bullish, so I don’t have any interest in shorting, but I also recognize that we may need to get past this area to have a more significant move. If we were to break down below the 2550 level however, that probably sends this market down to the 2500 level after that. I prefer the upside, so I will be patient and wait for a reason to go long.

Sp 500

NASDAQ 100

The NASDAQ 100 broke higher during the day, slicing through the 6300 level again. We even trying to make a fresh, new high, but at this point I think that we will continue to see churning in this area, with pullbacks perhaps being buying opportunities. I think eventually we could go to the upside for a longer-term move, and that ultimately, we will see the 6500 level. However, we have been a bit overbought for some time, and it now looks likely that a pullback is necessary to build up the momentum needed to continue this move. The 6200-level underneath should be massively supportive as well, so even if we drop down to that level, I still think that there is plenty of buying pressure under there. In fact, I believe that the uptrend is very much intact until we were to break down below the 6000 handle. I expect volatility, but eventually the buyers will return.

Nasdaq

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.

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