Nasdaq 100, S&P 500, FTSE 100 Forecasts for the Week

Nasdaq 100, S&P 500, FTSE 100 Forecasts: Bullish

Nasdaq 100 Technical Forecast

Outlook: Bullish

Danger urge for food stays sturdy out there regardless of calls by many buyers that valuations have turn out to be unhinged from actuality. Whereas some metrics are certainly working above their historic averages, the market can keep irrational longer than one can keep solvent and making an attempt to name the highest at every tick larger could also be a idiot’s errand. Danger urge for food is evidenced elsewhere as US companies wade into the cryptocurrency house with firm’s like Tesla saying positions in Bitcoin – which additionally trades at document ranges.

Evidently, the market is awash with liquidity and buyers are clamoring for returns wherever they are often discovered – two probably ominous indicators for US equities. Nonetheless, a cloth pullback in value would require a catalyst and, because it stands, the elemental panorama stays comparatively secure and constructive.

Nasdaq 100 Value Chart: 4 – Hour Time Body (October 2020 – February 2021)

Suffice it to say, the Nasdaq 100 could also be poised to climb larger within the weeks forward. A collection of ascending trendlines have provided affect at varied phases, however the widespread theme all through is their bullish nature. Because the tech-heavy index could proceed to bounce between the strains on an intraday foundation, alternatives for merchants using shorter range-trading methods may come up. Preliminary help within the occasion of a bearish reversal could reside within the 13,600 space.

S&P 500 Technical Forecast

Outlook: Bullish

Value motion within the S&P 500 is equally encouraging because the index trades alongside the underside of an ascending trendline from early November – notching new document highs with each step larger. Since prior value motion is nonexistent at these ranges, resistance is usually derived from trendline projections which ends up in a scarcity of hardline technical obstacles. Nonetheless, latest strikes recommend the ascending trendline from November affords some extent of resistance.

S&P 500 Value Chart: Each day Time Body (February 2020 – February 2021)

Pullbacks could function wholesome consolidation because the collection of higher-highs and higher-lows seems poised to proceed. Within the meantime, follow @PeterHanksFXon Twitter for updates and evaluation.

FTSE 100 Technical Forecast

Outlook: Bullish

The FTSE 100 lags behind the Nasdaq 100 and S&P 500, however a collection of ascending trendlines could assist information the FTSE larger within the weeks to return. Fortunately for bulls, a plethora of help resides barely beneath the present buying and selling value whereas preliminary resistance may reside alongside the 200-period transferring common close to 6,625.

FTSE 100 Value Chart: 4 – Hour Time Body (July 2020 – February 2021)

A key danger to the rally at this stage is a reversal beneath the January low. Such a break would set up a collection of lower-lows and lower-highs, signaling the FTSE 100 could also be weak to a longer-term contraction.

Really helpful by Peter Hanks

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–Written by Peter Hanks, Strategist for DailyFX.com