Dow Jones 30 and NASDAQ 100 Price Forecast December 11, 2017, Technical Analysis

BREAKING NEWS

US, China agree to slash tariffs to 10% for 90 days

Christopher Lewis

Updated Fri, Dec 8, 2017, 10:47 PM

Dow Jones 30

The Dow Jones 30 rally during the trading session on Friday, as the jobs number came out relatively well. In general, I believe that pullbacks are buying opportunities, and the 24,000 level is essentially the “floor” in the market. Given enough time, the market should then go to the 24,500 level which has been resistance, and a move above there should send this market to the 25,000 level. We are currently in the midst of the “Santa Claus rally”, and therefore I think that every time we dip money managers will be looking to put money into the market and add to positions to pad results for investors. If we stay above 24,000, shorting is simply impossible this time of year.

Dow Jones 30 and NASDAQ Index Video 11.12.17

NASDAQ 100

The NASDAQ 100 rallied a bit during the course of the session on Friday, reaching towards the 6370 handle. More important, we had formed a massive “W pattern” on the hourly chart, with a floor at the 6225 handle. Longer-term charts show hammers on the weekly chart, bouncing from an uptrend line. The 6400 level above is resistance, so having said that I think it’s only a matter of time before selloff get picked up as value, for many of the same reasons that I listed in the Dow Jones 30. A break above the 6400 level should then reach towards the 6425 level, in a breakout above there clears the way for a move towards the vital 6500 level, which I would not be surprised at all to see tested and broken above between now and the end of the year.