Dow Jones 30 and NASDAQ 100 Price forecast for the week of January 29, 2018, Technical Analysis

US stock markets continue to rally during the week, breaking fresh, new highs yet again. It is getting a bit parabolic, so the longer-term trader is going to have to be very cautious.

 

Dow Jones 30

Obviously, one cannot sell the Dow Jones 30 anytime soon. The market is extraordinarily bullish, but longer-term traders are going to struggle with the idea of buying at this high level, because a pullback could involve a 1500-point move. The 25,000 level should be rather supportive at this point, and quite frankly I think it would be healthy if we pull back to that level. I believe that the market will eventually continue even higher, but longer-term traders need to see some type of value before they start investing in this market.

NASDAQ 100

The NASDAQ 100 has exploded to the upside as well, clearing the 7000 level during late Friday trading. Because of this, I think it’s only a matter of time before we continue to go to the upside, but when I look at the Bollinger Bands, we are starting to get into the overbought area, and the stochastic oscillator has been pegged in the overbought condition for what seems to be ages. I think that pullbacks are necessary, but those are buying opportunities. The 6750-level underneath is the “floor” in the short-term uptrend, while the 6500 level is even more supportive for the longer-term move. I like buying dips, they represent value, but at this point it would be very difficult to go long of this market because of the significant pullback that will need to be had at one point or another.

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S&P 500 Price forecast for the week of January 29, 2018, Technical Analysis

The S&P 500 rallied again during the week, as we continue to see massive amounts of bullish pressure. We are approaching the 2900 level, and quite frankly this point I think we are a bit parabolic.

 

The S&P 500 has rocketed to the upside yet again, as we continue to see a parabolic move in a market that simply does not pull back. While bullish, I am a bit concerned that we have not seen a red candle but sparingly over the last several months. I anticipate that we will eventually go higher, but I would prefer to see some type of pullback to offer value. Short-term traders will have an easier time of trading this type of market, because the longer-term trader must worry about a significant pullback. Because of this, if you are trading longer-term, you need to see a pullback to offer a better entry price.

The 2700 level underneath would make an excellent floor, but unfortunately, I don’t think we see that until we test at the very least the 2900 level, if not the 3000 level. If you are a longer-term trader, you obviously want to be buying and not selling, but going long at this point is chasing the trade, one of the absolute worst things that you can do.

If you are already long in this market, and you should be if you’ve been watching here at FX Empire, then it’s about managing the trade. I believe that stop losses should be below the 2800 level, if not the 2700 level. Obviously, depending on how long you’ve been in this trade to the upside you may be able to adjust your stop losses accordingly. Selling is all but impossible.

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S&P 500 Price Forecast January 22, 2018, Technical Analysis

The S&P 500 has been very volatile as of late, but Friday was bullish, as it looks likely we are going to go much higher. The 2810 level is an area that continues to attract a lot of attention, but it appears that we are trying to build up the necessary momentum to finally go higher.

The S&P 500 rallied during the Friday trading session, as we continue to see the 2810 level offer significant resistance. If we can break above there, the market should then go higher, perhaps reaching towards the 2825 level, and then eventually the 2850 level. Short-term pullbacks should continue to offer buying opportunities, and I believe that the market will find plenty of support at the 2790 handle underneath, as we continue to see a lot of interest around the level. I think that ultimately the market should continue to go to the 2850 level longer term, but it is going to take a while to get there.

If we were to break down below the 2775 handle, then I would be a seller of this market, but I don’t think that’s going to happen, at least not in the short term. There seems to be a lot of a “buy on the dips” mentality out there, as algorithmic traders are willing to pick up anything close to a 1% drop. The tax reform, the corporate gains, and of course the global expansion continues to push the S&P 500 higher. The US dollar falling also helps with exports, so that’s yet another reason that this market continues to attract money. With repatriation of funds from overseas, many major companies are going to be buying their own stock back, and that of course will lift this market as well.

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Dow Jones 30 and NASDAQ 100 Price Forecast January 15, 2018, Technical Analysis

US stock markets rally during the session on Friday as the US dollar has taken an absolute pounding in the Forex markets. It’s likely that we will continue to see a “buy on the dips” mentality.

  

Dow Jones 30

The Dow Jones 30 broke above the 25,750 level, a very bullish sign. The market has been choppy during the day but most certainly with an upward momentum. I think that the market continues to be a “buy on the dips” situation, as not only are we seeing the US dollar getting hammer, but we are also focusing on corporate profits, and of course the tax bill that was just signed. Money seems to be flowing into the stock market every time it drops, so therefore I like buying these dips and adding to what is becoming a very large core position over time.

NASDAQ 100

The NASDAQ 100 went sideways initially during the session on Friday, but then pulled back to break below the 6700 level. That’s an area that has previously been resistance, and should now be support. In fact, it proves itself to be so, so then we rally towards the 6750 level, an area that looks as if it is offering short-term resistance. A pullback from this area is a buying opportunity, which makes sense considering that the NASDAQ 100 is just is bullish as the other indices in the United States. I’ve got no interest in selling this market, and I believe that the NASDAQ 100 will act very much like the S&P 500 and the Dow Jones 30, buying dips being the norm. I’ve got no interest in shorting this market, and believe that the 24-hour exponential moving average should continue to offer dynamic support as seen on the chart.

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S&P 500 Price Forecast January 15, 2018, Technical Analysis

The S&P 500 has been explosive to the upside during the Friday session, as the US dollar has been drifting lower. I think that the market is now looking to go to the 2800 level above. With the move on Friday, it’s likely that we will continue to see buyers on dips.

 

The S&P 500 went sideways initially during the day on Friday, but as you can see the volatility had picked up. The market has rallied significantly, and we are knocking on the door of 2790. The 2800 level is the next large, round, psychologically significant barrier to overcome, but we have not been able to do so quite yet. I think if we can break above the 2800 level, the market should continue to go much higher. I think at that point, we will probably go to the 2900 level, then eventually the 3000 level which is my year-end target.

Short-term pullbacks are buying opportunities as the offer value in a situation that has been extraordinarily bullish, based upon tax reform, corporate profits, and of course a lot of economic optimism in general. I think that the 2770 level is the short-term floor, but quite frankly even if we break down below there I think there will be plenty of opportunities just waiting to happen. The attitude of the markets will continue to be bullish, and although there will be headlines occasionally the cause issues, this is a good way to get rid of “scared money”, and therefore gives us an opportunity to start buying. This has been a long-term moved to the upside, and I don’t see that changing anytime soon. With the devalued US dollar, it should help exports coming out of the United States, and that of course helps the S&P 500.

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S&P 500 Index Price Forecast January 11, 2018, Technical Analysis

The S&P 500 initially fell during the trading session on Wednesday, but we have found enough support at the 2735 level to bounce and rally significantly. The 2750 level looks to be resistance, and I think if we can break above there it’s likely that the market will continue to go much higher. I think that the market is continuing to base its decision based upon tax laws, and perhaps even potential global growth.

  

The S&P 500 has initially fallen during the trading session, reaching towards the 2735 handle. There’s enough bullish pressure in that area though that we turned around and rally. Ultimately, I think that if we can break above the recent highs, the market is free to go to the 2800 level, and then possibly even 3000 which is my longer-term projected target for 2018. Ultimately, this is a market that is going to be very noisy, but I believe in buying on dips as it has been proven more than once that algorithmic traders are willing to get involved.

In general, I’m not interested in selling this market, because I believe that the overall uptrend continues to be very important, and certainly very aggressive. I think that the market will eventually find reason enough to rally based upon just about any metric you throw at it. I think that the market continues to be noisy, but I also believe that the underlying trend is certainly intact, and it’s very likely that we will continue to find that dips will be looked at as value. As long as that’s the case, and there’s nothing on this chart to suggest that it will change, we should continue to find plenty of buyers. I have no interest in shorting.

MORE WILL UPDATE SOON!!

Dow Jones 30 and NASDAQ 100 Price forecast for the week of January 8, 2018, Technical Analysis

The US stock markets rally during the week, even though we had a less than anticipated jobs number coming out of the United States. I think it’s obvious that the stock markets continue to find plenty of bullish pressure, and this week of course would have been when money management came back from holiday to put money to work.

 

Dow Jones 30

The Dow Jones 30 rallied significantly during the week, breaking above the shooting star from both of the previous weeks. The 25,000-level broken to the upside is a psychologically significant event, and I think that we are going to continue to find buyers jumping into this market longer term. Pullbacks should be buying opportunities, and at this point I think money managers have signal that they are willing to jump into the equities market with both feet this year. I think we are going to see a move to the upside, and I think that given enough time it’s likely that the dips will be bought as well.

NASDAQ 100

When looking at the weekly chart, you can see that we have followed an uptrend line, and have broken above the 6500 level as well. This is a very bullish sign, and I think that the market is ready to go much higher. Breaking above the 6500 level sends fresh money into the marketplace, and it says that we are ready to go to the 6750-handle next. I think that the markets will eventually find reasons to go higher going forward, although the NASDAQ 100 has been a bit of a laggard when it comes to the other US indices that we follow here at FX Empire. Its bullish, but you may get more momentum out of the other indices.

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S&P 500 Price forecast for the week of January 8, 2018, Technical Analysis

The S&P 500 has rally during the week, breaking above the 2700 level, and more importantly from a technical analysis standpoint, breaking above the top of a shooting star from the previous week and the previous week before that. In other words, this is a very bullish sign.

 

The S&P 500 rallied during the week, slicing through the tops of a couple of shooting stars and the 2700 level. This is a very bullish sign, and I think that the market should continue to go to the upside, perhaps reaching the 2800 level next, and then eventually the 3000 level. The S&P 500 has been explosive during 2017, and it looks as if the continuation is ready to happen. US economic numbers continue to be very bullish, and although the jobs number missed on Friday, it appears that it only dampened spirits to the upside, not killed them.

I think there is more than enough reason to think that dips will be buying opportunities, and we may find the 2700 level to be a bit of a floor. I think that the 2500 level will be a floor, as it is a large, round, psychologically significant number. Ultimately, this is a market that continues to find reasons to go higher, and I don’t see anything on the chart to suggest that it will be anything different as the buyers are likely to look at any pullback as value. Money managers have been coming back from the holidays during the week, and it looks as if they have put money to work yet again. With this, the “long only” fund certainly are starting to push the market again. I suspect that we continue to have a nice longer-term investing opportunity.

MORE WILL UPDATE SOON!!

Dow Jones 30 and NASDAQ 100 Price forecast for the week of January 2, 2018, Technical Analysis

The US stock indices rally during the week, but in thin and illiquid trading, we could not hang on to the gains. I think we are getting a bit overextended, so short-term pullback is possible. It will also be very hesitant to move drastically with the jobs number coming.

 

Dow Jones 30

The Dow Jones 30 rallied a bit during the week, but you can see that the 25,000 level above is a psychological resistance barrier, and we could not break above it. The weekly candle is a bit of a shooting star, but with this then trading, I don’t pay much attention to the market action as you have to look at the totality of how things have gone. We are bit overextended at based upon the stochastic oscillator, and we crossed as well, which of course means we will probably get a selling opportunity. However, I prefer to go long as the trend is in that direction, so the 23,500-level underneath should be a massive buying opportunity.

NASDAQ 100

The NASDAQ 100 was also very positive for the year, but we pulled back a bit during this week, reaching towards the 6400 level. The shooting star from the previous week suggested that we were to pull back, but I think there is a certain amount of support in the 6400 level, and we also have an uptrend going on in the form of the channel, so I believe it’s only a matter of time before the buyers get involved. I like buying the NASDAQ 100, but we need to see it on short-term charts such as a daily time frame, as it can fine tune our move. Given enough time, I think we break above the 6500 level.

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S&P 500 Price Forecast January 2, 2018, Technical Analysis

S&P 500 traders were active on Friday, as we witness quite a bit of volatility. Some of this of course would have been traders closing out positions before the end of the year, and one thing that is probably worth noting is the first thing Americans did was sell. However, I think that these pullbacks continue to offer value, but obviously the 2700 level has been very difficult to overcome.

The S&P 500 rallied a bit during the trading session on Friday, reaching towards the 2697 handle before rolling over. As we did, it was a strong move, and it could signify a bit we just could not hang on to the volume. However, I think it’s only a matter of time before the buyers step in and it appears that the 2675 level is offering support. I fully anticipate that the 2700 level gets broken almost immediately this year, especially if the jobs number is decent this week.

Alternately, if we did breakdown below the 2675 handle, I think it’s only a matter of time before we find buyers at 2650. That’s an area that even more supportive, and I would be much quicker to get involved if that value presents itself. I would be stunned if we break down below there, because I think that the overall reasons for the market going higher continue, and of course this is going to be looked at as a value proposition. Once we break above the 2700 level, I suspect that we will target the 2725 level next. Stock markets continue to be in a “risk on” mood, as global performance economically has been strong, and it is apparent that the US GDP of roughly 3% means that the S&P 500 should continue to show nice profits.

 

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Dow Jones 30 and NASDAQ 100 Price Forecast December 6, 2017, Technical Analysis

With the volatility comes pullbacks, and these pullbacks look as if they are offering value for the astute trader, and of course algorithmic black box systems.

Dow Jones 30

The Dow Jones 30 has fallen a bit during the trading session on Tuesday, reaching towards the 24,200 level. I believe that the market should continue to go much higher. Ultimately, I think that the 25,000 level will be targeted, but in the meantime the initial target will be the 24,500 level after that. Currently, I look at the 24,000 level below as the “floor” in the market, and therefore I like buying these dips as it appears Wall Street is ready to do the same. The so-called “Santa Claus rally” is likely to happen, so therefore as money managers try to pad their funds with stocks, to show signs of progress for the year. That provides a little bit of a bullish attitude in the month of December.

NASDAQ 100

The NASDAQ 100 has been out of control lately, as we continue to see so much in the way of negativity, and then bounced rather radically from the 6225 level. It looks as if we are going to try to fill the gap from a couple of days ago again, meaning that the markets going to find support near the 6370 level. The stochastic oscillator is looking very likely to cross over in the overbought range, so therefore I think that it’s a matter of time before you pull back. The volatility the NASDAQ 100 has been very difficult to deal with, and I think that it is easier to play the Dow Jones 30 to the upside, or perhaps even the S&P 500. Tech stocks continue to look very volatile around the world, and the NASDAQ 100 isn’t any different.

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