Share Market Forecast April 7, 2017
In the S&P 500, the upward trend continues. Yesterday, the S&P 500 initially fell but found support yet again and marched much higher. A fairly weak oil market number caused a pullback, but by the end of the day, we started to see buyers jump back in as the longer-term trend continued. Because of this, I believe that this market continues to go higher, and that dips will continue to offer value that traders can take advantage of. I have no interest in selling and believe that the 20-day exponential moving average below should continue to offer quite a bit of support.
Dow Jones 30:
The Dow Jones 30 had a rocky session yesterday as it initially fell, but then rallied quite significantly. A less than stellar oil inventory number came out, and that pushed the market back down. However, it appears that the support has held and the buyers have returned towards the end of the day. Because of this, I am very bullish in this market still, and I believe we are going to reach towards the highs yet again. I have no interest in selling and look at pullbacks as continued value.
The NASDAQ 100 initially moved lower during the day yesterday but found enough support later to continue to go higher. Quite frankly, it looks as if it is ready to reach towards 5500 anytime. I like pullbacks as I believe that they offer value in a market that’s ready to take off to the upside. But, I do recognize that the 5500 mark will have a certain amount of psychological resistance attached to it.
Share Market Forecast April 6, 2017
On April 5th, there was some very interesting movement in the S&P 500. Initially, the market dropped off substantially under tremendous selling pressure. However, after reaching the 20-day exponential moving average, the momentum turned upwards and the index ended with nearly no significant drop at all. This indicates that there is a lot of support at the 2300 levels and it would not at all be surprising to see the index hit 2400 sometime soon. What does this mean for you? Keep looking out for dips in the market and buy during the dips. At this point in time, considering the strong underlying support, a sustained dip is unlikely. Thus, dips will see a lot of buying activity and the trend would soon move upwards.
Dow Jones 30:
The Dow Jones 30 neatly mirrored the movement in the S&P 500 – after an initial drop, large amount of buying was witnessed and the trend moved upwards substantially (from the lows of the day). Right now, it appears that there is a lot of support around the 20,850 mark. Thus, you can expect to see continued upward movement (long-term) with some short-term dips in between. Be on the lookout for these dips and buy during these periods.
The NASDAQ 100 also moved in line with the two indices above. After sustained selling initially, the market turned around and recovered smartly. The 20-day exponential moving average appears to be the key support point here as well. For you, the goal is simple – look for dips in the market, buy during those dips and wait for the trend to move upwards. At this time, a sustained dip appears unlikely.