Daily Share Market Forecast August 22, 2017

S&P 500:

Expectation: Bullish

Target: 2500

Recommendation: Buy with a target of 2500

The S&P 500 moved up yesterday – it ended the day at 2428, a gain of 2 points. This reflects that the market is currently in a near term bullish or consolidation phase. At this time, trend analysis indicates that this market will continue to be bullish in the longer term and in the near term. We do not recommend shorting this market with a longer term perspective. You should buy with a target of 2500. 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 near term trend will return 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 turn strongly bullish and the 2500 level could be tested.

Dow Jones 30:

Expectation: Bearish

Target: 21,600

Recommendation: Sell with a target of 21,600

The Dow Jones 30 also moved up yesterday – overall, it gained 44 points and closed at 21,703. 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. This market has an immediate support at the 21,600 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. 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 become return and the market would move upwards once again and test the 22,000 level. You should sell with a target of 21,600.

NASDAQ 100:

Expectation: Bearish

Target: 5750

Recommendation: Sell, with a target of 5750

The NASDAQ 100 moved lower yesterday – it ultimately ended the day 4 points lower and closed at 5786. The NASDAQ is now in a near term bearish or consolidation phase but 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. In the near term though, the market is bearish and will move downwards further. You should sell with a target of 5750. The 5750 region is the immediate support level for this market. If the market closes below this level, then the near term bearish trend will strengthen and further downward movement would be possible. The 5850 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.