S&P 500 and Nasdaq Forecast - 16 November 2018

S&P 500

The S&P 500 fell initially during trading on Thursday but found enough support underneath the 2700 level to bounce significantly and form a positive candle. This bounce has been rather impressive, but there is a significant amount of resistance just above, extending to the 2750 level. That’s an area that should continue to be a major source of selling pressure, so I think this will probably be yet another rally that sellers will jump on. The 50 day EMA is above, so if we can close above that on a daily close, then I might be tempted to buy this market. Ultimately, this is a very negative market in general, and the fact that we have a couple of long wicks extending to the 2750 level from the previous couple of days, certainly adds a lot of negativity as well.

SP 500

NASDAQ 100

The NASDAQ 100 fell initially during the trading session as well, breaking below the 6750 level but bounced to break above the 6800 level. I believe at this point, the market has plenty of resistance above, extending all the way to at least the 7000 level. That’s an area that has a certain amount of psychological and structural resistance built into it, so I don’t think it’s going to be easy to break above. The 50 day EMA is just above there, and I think we need to close above there on a daily close to get involved to the upside. The NASDAQ 100 has been hammered due to the US/China trade war, and I think at this point we are witnessing a bounce that traders will jump on again at the first signs of trouble, or to simply unloading positions at higher levels.

Nasdaq

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.