S&P 500 And Nasdaq 100 Forecast - Friday, Dec. 9
Video length: 00:01:30
The S&P 500 rallied during the session on Thursday, testing the 2250 handle. That area offered enough resistance to turn the market back around slightly but quite frankly we closed high enough in the range for the day that I think we will break out. Pullbacks at this point in time has to be thought of as value, as this is a market that has been so strong. The last couple of sessions have seen a significant move higher, so any time the market pulls back, it’s likely that there are people who have missed out on this rally that would love to be part of it. This could perhaps be what is annually thought of as the “Santa Claus rally.”
(Click on image to enlarge)
The Nasdaq 100 had a slightly bullish candle form for the Thursday session as it looks all but set to reach towards the 4900 level. I believe that the 4800 level below is supportive, so a pullback to that area that forms something along the lines of a hammer or even just a bullish candle would be reason enough for me to get involved again. I think that eventually we will break out above the 4900 level and reach towards the 5000 level, and as a result I remain very bullish. Beyond that, the S&P 500 and the Dow Jones 30 both have exploded to the upside and broken above major resistance barriers. The Nasdaq 100 is obviously a laggard at this point, but the 3 markets do move in the same direction over the longer term. In other words: I believe that this market is offering value going forward and has a bit of catching up to do to its brethren.
I have absolutely no interest in shorting this market as I believe the US indices in general will continue to be the strongest in the world, and quite frankly stocks around the world look good overall. The DAX, the Nikkei 225, the CAC, and various other markets that I follow are all showing the same kinds of strength.