Daily Share Market Forecast August 11, 2017

S&P 500:

Expectation: Bearish near term

Target: 2400

Recommendation: Sell, with a target of 2400

The S&P 500 dropped sharply yesterday – it ended the day at 2438, a loss of 35 points. This reflects that the market is currently in a near term bearish or consolidation phase. At this time, trend analysis indicates that this market will continue to be bullish in the longer term but in the near term it is likely to trend lower. We do not recommend shorting this market with a longer term perspective. But currently, the market is set to move lower or remain range bound. You should either hold or sell with a target of 2400. This market has an immediate support at the 2400 level. If the market goes below the key 2400 support level and closes below it, then the bearish trend will become stronger and further downward movement will be possible. The 2450 level is the immediate resistance level for this market. If the market closes above this point, then the near term trend will again turn bullish. We expect that the near term bullish trend will return and this market would continue to move upwards again and would close above the 2500 levels and then move towards higher levels.

Dow Jones 30:

Expectation: Bearish near term

Target: 21,700

Recommendation: Sell, with a target of 21,700

The Dow Jones 30 moved sharply lower yesterday – overall, it lost 204 points and closed at 21,844. This reflects the near term bearish or consolidation phase of the market. Trend analysis indicates that this market will continue to be bullish in the long term and we do not recommend shorting this market with a long term investment horizon. But in the near term, this market is bearish and is likely to fall further. This market has an immediate support at the 21,700 level. If the market goes below this level and closes below it, then the bearish near term trend will become stronger and further downward movement would be possible. You should either hold or sell with a target of 21,700. The 21,850 level is the immediate resistance point for this market. If the market closes above this level, then the near term bullish trend will return and the market would move upwards once again and test the 22,000 level again.

NASDAQ 100:

Expectation: Bearish near term

Target: 5650

Recommendation: Sell, with a target of 5650

The NASDAQ 100 also moved sharply lower yesterday – it ultimately ended the day 131 points lower and closed at 5788. The NASDAQ is now in a near term bearish phase though the long term trend remains bullish. We do not recommend shorting this market with a long term perspective since the long term trend is bullish and the market should again start moving upwards. In the near term though, the market is bearish and will drop further. You should either hold your position or sell with a target of 5650. The 5650 region is the immediate support level for this market. If the market closes below this level, then the near term bearish trend will become stronger and further downward movement would be possible. The 5800 level is the immediate resistance point for this market. If the market closes above this level, then the near term bullish trend will return and further upward movement would be possible.