Daily Share Market Forecast June 12, 2017

S&P 500:

Expectation: Bullish

Target: 2450 and upwards

The S&P 500 was flat on Friday and ended the day at 2431. Considering the plunge in the NASDAQ on Friday, it appears that traders are trying to move out of overheated (overpriced) tech stocks. This would suggest that stocks in other industries could see greater investor interest and therefore, could be set for a significant bull run. Thus, overall we expect this market to continue to be bullish and we do not recommend shorting this. We expect this market to move upwards and it should close above the 2450 levels soon and then move towards higher levels. At this point in time, the 2400 mark is a support level for this market. If the market goes below this level and closes below it, then further downward movement may be possible. However, we expect this market to remain bullish.

Dow Jones 30:

Expectation: Bullish

Target: 21,500

The Dow Jones 30 was bullish on Friday – it moved towards fresh highs and closed at 21,271. It appears that investors are taking out some funds from overpriced tech stocks and are picking more stocks from other industries. This would indicate that a strong bullish run in the Dow Jones 30 is likely. Thus, we expect this market to continue to be bullish and we do not recommend shorting this. We expect that this market will soon reach the 21,500 levels and then move higher. The 21,100 mark is a new support level for this market. If the market goes below this level and closes below it, then further downward movement may be possible. However, we expect this market to remain bullish.

NASDAQ 100:

Expectation: Bullish

Target: 5950

The NASDAQ 100 was sharply bearish on Friday – it dropped 143 points and closed at 5741. Over the last few months, investors have bought into tech stocks heavily and as a result, NASDAQ has led the bull run in US stock market indices. This has also led to sharp rise and overpricing of many tech stocks. Friday’s sell off appears to indicate that investors are now trying to get out of overpriced tech stocks and move to other industries. This may cause a short term dip in the NASDAQ 100. In the longer term, we expect this market to continue to be bullish and we do not recommend shorting this. We expect this market to continue moving upward and hit the 5800 level again. The 5700 region is a new support level for this market and the NASDAQ 100 should remain above this level in the near term. You should use short term dips in order to buy and consolidate your positions.