S&P 500 And Nasdaq 100 Forecast - Tuesday, Dec. 4

S&P 500

During the weekend, the Americans and the Chinese have come to an agreement to put a 90-day moratorium on fresh new tariffs, which of course is exactly what the market was hoping. Because of this, the market gapped at the open and reach the resistance above that has been so important for a while. The 2825 level is a significant barrier that might be difficult to clear, but if we do break above that level, then I think we will continue to go much higher, kicking off what would be the beginning of the hopeful “Santa Claus rally.” In the short term, I think we very well could pull back to fill the gap though, meaning that a little bit of patience might be able to offer profits if you can buy from lower levels. I think that the 2750 level should be supported.

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Sp 500

Nasdaq 100

The Nasdaq 100 has gapped higher to open up the week as well, breaking above the 50 day EMA. I think at this point, it’s very likely that the market may pull back to find support, but I would expect buyers underneath. Not only have we broken above the 7000 level, but we have also cleared the 50 day EMA, and a downtrend line that should be paid attention to as well. I think overall, we should see plenty of support underneath, so I think much like the S&P 500, we may get a little bit of a pullback but there should be a lot of interest at lower levels, specifically near the 6900 level. Alternately, if we break above the top of the shooting star, then the market is probably free to continue to go much higher.

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