Daily Share Market Forecasts for the week April 17, 2017 to April 21, 2017

Share Market Forecast April 21, 2017

S&P 500:

The major U.S. equity markets closed sharply higher on Thursday as investors reacted to strong quarterly earnings reports and upbeat comments about tax reform by U.S. Treasury Secretary Steven Mnuchin. The benchmark S&P 500 Index closed at 2355.84, up 17.67, or +0.75%. Although the major indexes have shown pockets of weakness this week, longer-term investors kept coming in on weakness as they approached key value zones. Most of this buying was related to positive earnings expectations. While we expect positive earnings to continue to support the current rally, there are some geopolitical developments that may cause the market to pause on the upside.

Dow Jones 30:

The Dow Jones 30 rallied during the day on Thursday, testing the 20,500 level. If we can break above there, the market should then go to the 20,800 level over the longer term. I still believe in the uptrend, but we are in the middle of the earnings season so it is more than likely that it will keep this market a bit anxious. Ultimately, I will keep on buying dips and have no interest in shorting.

NASDAQ 100:

Unlike the other US indices, the NASDAQ 100 still looks very strong and I believe a break above the top of the Wednesday session will send this market looking for the highs again. I believe in buying dips, and I believe that this is the first place that money will flow to when it comes to US indices. I have no interest in shorting.

Share Market Forecast April 20, 2017

S&P 500:

The S&P 500 tried to rally during the day on Wednesday but struggled a bit and was range bound. This makes a lot of sense because this is the earnings season and that, of course, causes quite a bit of undercurrent in the market. I think we are going to continue to consolidate in general and at the same time, short-term fluctuations will continue. I still believe longer-term we have an upward bias though, so I prefer buying more than selling.

Dow Jones 30:

The Dow Jones 30 initially tried to rally during the day on Wednesday but found a bit of resistance at the 100-exponential moving average. However, I still believe that there is a significant amount of bullish pressure underneath, and obviously, we are in the middle of the earnings season, so that means that we will more than likely continue to go back and forth.

NASDAQ 100:

The NASDAQ 100 rallied during the day yesterday, breaking above the top of the hammer from the Tuesday session, showing signs of bullish pressure yet again. The NASDAQ 100 has led the way for US indices overall, and I believe that will continue to be the case. With this being the case, I am bullish and I am buying dips.

Share Market Forecast April 19, 2017

S&P 500:

S&P 500 traders pulled back slightly during the day on Tuesday as we continue to consolidate. I believe that it’s only a matter of time before the buyers return though; longer-term we are still very healthy looking but currently, the market should deal with earning season, and that, of course, will cause volatility. With this, I’m waiting for a supportive candle underneath to start taking advantage again as I believe that the 2300 level below is the “floor” in this market. I have no interest in shorting this market at all.

Dow Jones 30:

The Dow Jones 30 pulled back slightly during the day on Tuesday as we continue to grind sideways. The 20,500 level continues to offer support, and with the earnings season, I expect to see a bit of volatility. Ultimately, I believe that buyers will return though, so I have no interest in shorting this market and I am looking for support of candles to go long.

NASDAQ 100:

The NASDAQ 100 did fall as well, but it also bounced back significantly. This being the case, the market looks as if the buyers are going to continue to return to this market as it is doing better than many other indices. Ultimately, I believe that the market continues to grind towards the 5500 level. The 5300-level underneath continues to be the floor.

Share Market Forecast April 18, 2017

S&P 500:

The S&P 500 rallied during the day on Monday, as we continue to see overall bullish pressure and of course support below. I believe that 2300 should continue to offer support. The blue 100-day exponential moving average continues to offer support, and I believe it’s only a matter of time before we go higher on pullbacks. I believe that the market will continue to reach towards the 2400 level and then the 2500 level. I have no interest in shorting the S&P 500, as it is a very strong market longer term.

Dow Jones 30:

The Dow Jones 30 bounced during the day on Monday as we continue to see a lot of support below the 20,500 level. I believe if we can break above the top of the range, we will probably reenter the consolidation that the market had focused on for several weeks. Even if we do break below the bottom of the range for the Monday session, I think there is plenty of support below, especially near the 20,000 level. I have no interest in shorting this market.

NASDAQ 100:

The NASDAQ 100 broke higher during the day on Monday, and if we can break above the top of the shooting star from the Thursday session of last week, the market should continue to go much higher. I believe that the 5300-level underneath will act as a strong support.

Share Market Forecast April 17, 2017

S&P 500:

The S&P 500 fell on Friday, as we continue to see a bit of downward pressure. However, I believe that the 2300 level below is supportive, and although we are starting to roll over a bit, when you look at the longer-term charts, we are essentially forming a bullish flag. I would be very interested in buying near 2300 if we get some type of supportive candle or a bounce. I have no interest in shorting this market currently and believe that the buyers are returning relatively soon, especially considering that earnings season kicks off in earnest this week.

Dow Jones 30:

The Dow Jones 30 has drifted a little bit lower recently, but keep in mind that this does not seem to indicate the start of a new long-term bearish trend. I still believe in the uptrend overall, and am looking for support of candles in this general vicinity or perhaps even as low as 20,000 to start buying again.

NASDAQ 100:

The NASDAQ 100 has also been under a little bit of pressure recently. I think there is a significant amount of support just below at the 50-day exponential moving average, and of course at the 5300 level. With this, I’m waiting to find a supportive candle to go long again.

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