S&P 500 and NASDAQ 100 Forecast - 19 February 2018

S&P 500

S&P 500 traders had a volatile day on Friday, testing the 2750 level, but rolled over. There was a lot of noise due to indictments in the Mueller case, but at the end of the day it wasn’t much of a bombshell, as nobody that would have mattered in the end was indicted. The candle does look like it is showing a bit of exhaustion, so I would not be surprised to see a short-term pullback, but I think there should be plenty of support near the 2700 level. Alternately, if we break above the top of the candle for the week, that should be a buying opportunity as well, sending this market looking for the 2800 level. Ultimately, this is a market that I think is going to continue to try to find buyers, but I would also anticipate a lot of volatility.

SP 500

NASDAQ 100

The NASDAQ 100 has tried to rally during the trading session on Friday but ended up forming a shooting star. I think this suggests that we are going to drop down from here, perhaps looking for 6700 underneath which is previous resistance, and it should now be support. I think that breaking above the top of the shooting star is also a bullish sign, but I think at this point what we are looking at is more exhaustion than anything else, but I do believe that longer-term we are going to continue to reach towards the 7000 handle which was the recent highs. Ultimately, this is a market that I think will rally, but has gotten a bit ahead of itself over the last several sessions. I believe that there is a “floor” in the market at 6200 level, and we remain in an uptrend if we can stay above that level.

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.