S&P 500 and Nasdaq Forecast - 30 August 2018

S&P 500

The S&P 500 rallied during trading on Wednesday, breaking above the 2900 level quite decidedly. At this point, I’m looking for short-term pullbacks to take advantage of, as we have cleared a major hurdle. I believe that now we will eventually go looking towards the 3000 level, but it’s going to take some time to get there. It will be choppy, but we certainly have a “risk on” attitude overall. I think that the 2900 level should be supportive, as well as the 2875 handle. We have clearly shown more proclivity to the upside than down, so I have no interest in shorting this market, I think we have further to go as earnings season has been good, and of course the US dollar is starting to soften up quite a bit. That’s certainly helps.

SP 500

NASDAQ 100

The NASDAQ 100 rallied significantly as well, closing at the very highest. The NASDAQ 100 looks as if it is ready to go much higher. I think that short-term pullbacks will continue to be buying opportunities, as the uptrend line has certainly held. The 7500 level underneath is a massive floor in the market as far as I can see, and I think that we will continue to see buyers as soon as there is a little bit of value to be had. Technology stocks seem to be leading the way, and after of brief reprieve, the bull move has continued. In general, I believe that this market will eventually find its way towards the 8000 handle, but that’s probably a story for next year. If we break down below the uptrend line on the chart, that is an extraordinarily bearish sign.

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.