How long will the S&P 500 and Nasdaq bull run proceed post the US elections? The Nasdaq index was up 1.1%, while the S&P 500 rose 0.8% and the Dow Jones industrial average climbed 0.3% higher.
17 November, AtoZForex –US Stocks ended higher on Wednesday as energy stocks surged on a sharp rise in oil prices and as giant technology stocks, which have been mostly left out of a post-election rally, turned sharply upper. The Dow Jones set another closing high, building on its record close of Monday, notching seven straight days of profits. The biggest gainer was the Nasdaq composite index, up 1.1%, while the S&P 500 rises 0.8% and the Dow Jones industrial average climbed 0.3% higher.
S&P 500 – Why market remains bullish on the long term?
The S&P 500 had a slightly negative session on Wednesday, as we are a bit overextended at this point, but showing real signs of strength and bull run. This is a market that continues to find traders, and thus every time it declines. Investors and traders don’t have an interest in shorting this market and believes all the way down to the 2120 levels. We will see plenty of support. However, the break above the 2200 level, and that should send the market looking all the way to the 2500 handle over the longer term. Granted, it takes a very long time to reach that area, but in the meantime, this market should be bought only and not sold. With this, the market remains bullish over the longer term but recognize that the market is overbought currently.
NASDAQ 100 – Hammer candlestick
The NASDAQ 100 initially fell during the course of the session on Wednesday but turned back around to form a hammer which of course is a very bullish sign. The 4650 level below is massively supportive, and given enough time will break out to the upside. The 4800 level above is resistance, so pullbacks may happen between now and a breakout above there in order to build up the momentum necessary. However, a break above the 4800 level could then reach towards the 4900 level next. Still, have a long-term target of 5000 for the NASDAQ 100, but with this being the case it’s likely to bounce around and act very volatile. The market continues to find plenty of reasons to go higher, especially considering the reaction that the market had last week after the initial selloff due to the Donald Trump surprise election.
Think we missed something? Let us know in the comments section below.