S&P 500,NASDAQ 100,DOW Jones 30,Performance

PERFORMANCE:

Yesterday we had also recommended to buy SREI Infra (cash) around 105--104 for target of 109 with stop loss of 102.Our called proved fruitful and today it made high of 111.80 and closed at 109.35.We were able to mint profit or return of 3.80% in just two trading session.

Rest all call remains intact.....Maintain Stop loss and remember folks patience is the key..

S&P 500 and NASDAQ 100 Forecast

S&P 500

The S&P 500 initially fell on Monday in CFD trading, reaching down towards the 2595 level before bouncing again. By doing so, the market built up enough momentum to reach towards the 2600 level again and even break above there. The 2600 level of course is very important, and will attract a lot of attention. Now that we have broken above there, the market looks likely to find that area as supportive. Ultimately, I believe that the longer-term uptrend continues, in a market that seems to be algorithmically driven more than anything else. I believe that the US dollar falling has helped a little bit, but given enough time we should reach towards the 2625 handle, and then eventually the 2650 level. Ultimately, this is a market that I think is almost impossible to short, because we have seen so much in the way of buying pressure. However, that doesn’t necessarily mean that I want to jump into this market feet first and with a large position.

Buying dips continues to be the best way to trade this market, and I think that the 2590 level underneath is offering a temporary “floor” going forward. I think that the S&P 500 will continue to go higher with other US stock indices, least in the short term. The problem that we may have is that US Congress not been able to pass tax reform would be very negative for the stock market as it would affect corporate earnings. Because of this, I expect a lot of noise in this market and it is not to be an easy one to trade. Options are probably the best way to go, as at least then you can mitigate a lot of your potential risk.

Dow Jones 30

The Dow Jones 30 initially drifted lower during Monday trading, reaching towards the 23,500 level to find buyers. We bounce from there to reach towards the 23,635 handle, and then pull back again. However, every time we dip, the Dow Jones 30 seems to find buyers, as do most US stock indices. Algorithmic trading continues to lead the way, and I don’t think that this is a market you can sell. In fact, it looks to me like the 23,500 level is starting to offer a bit of a floor. I think that eventually we go looking towards the 25,000 level above, and although this market is overbought on longer-term charts, you certainly cannot step in front of this type of momentum as risk appetite continues to be strong.

NASDAQ 100

The NASDAQ 100 of course has been bullish as well, showing signs of support at the 6400 level, an area that was massively resistive in the past. By pulling back yet again, and showing support yet again, it looks as if we are in a bit of a holding pattern, perhaps trying to build up the momentum necessary to reach towards the 6500 level above. I believe that is a psychologically important level that of course will attract a lot of attention, and be a juicy target for the bullish traders out there to take advantage of.

I look at the 6370 level as a bit of a floor currently, and that short-term traders continue to jump in based upon dips that offer value, in a market that I think almost must test the 6500 level above to answer a lot of questions. Longer-term, I don’t see why we wouldn’t continue to go higher, because quite frankly the machines have taken over.

MORE WILL UPDATE SOON!!