#INDICES Forecast: #NASDAQ,#DAX & #SP500 (11 NOVEMBER 2022)

DAX Forecast: Explodes to the Upside

With this being the case, I think traders are getting way ahead of themselves, but it’s clear that they don’t want to hear anything other than bullish narrative at the moment.

• The DAX rallied rather significantly during the trading session on Thursday as we continue to the upside after CPI numbers in the United States came down.
• This suggests that perhaps inflation is starting to get beaten back, and that allows the idea of exports to pick up a bit.
• With this being the case, I think traders are getting way ahead of themselves, but it’s clear that they don’t want to hear anything other than a bullish narrative at the moment. Because of this, I think it’s probably only a matter of time before we see this market reach a structural high near the €14,500 level.

Be Cautious with Your Position Size

If we do turn around and break down below the 200-Day EMA, it’s very likely that we have a situation where the markets will continue to drop rather significantly, perhaps down to the 50-Day EMA near the €13,100 level. It would take a significant beat down to make that happen, so I don’t necessarily think it’s likely, but I suppose it’s possible that we could see a complete reversal if we get negative enough news. Clearly, the nonsensical volatility continues, and I think it’s something that you cannot ignore.

With that being the case, be cautious with your position size, because you can find yourself in a deep hole rather quickly. Nonetheless, I’m very cautious about shorting this market until we break down below that 200-Day EMA at this point. Clearly, the market is in a frenzy at the moment, and this can be a vicious thing to fight if you are not cautious.

NASDAQ 100 Forecast: Accelerates to the Outside After CPI

Whether or not people are willing to hold on through the weekend is also a very interesting question, which we may find out rather soon. If they do hang onto it through the weekend, then this short-term rally has more legs.

• The NASDAQ 100 shot straight up in the air during the trading session on Thursday as the CPI numbers in the United States came out lighter than anticipated.
• The 0.4% month-over-month CPI reading was much less than the 0.6% expected, so therefore it’s not a huge surprise to see that Wall Street reacted as predicted.
• The yearly year-over-year is still 7.7%, so I think this is setting up for a whole lot of disappointment eventually. It’s worth noting that the market is hanging around the 50-Day EMA, an area that a lot of technical traders will pay close attention to.

Federal Reserve will Continue to Remain Very Tight

Because of this, it’s very likely that the Federal Reserve will continue to remain very tight, even if the actual interest rate itself is accelerating at a slower pace. It is likely that we see the Federal Reserve remain tight for longer, and therefore it’s likely that we see the market fade this rally eventually, especially as we are running into an area that seems to be resistive, to begin with. That’s not to say that we don’t have an opportunity for a bit of a rally at this point, but I think it is more short-lived than anything else.

You can make an argument for a little bit of a double bottom recently, but at this point I think it’s very difficult to get overly bullish from the longer-term standpoint, considering that the overall economic picture is still very bleak. I think this is just simply going to be another bear market rally that sucks a lot of people into the market, only to chew them back out. Whether or not people are willing to hold on through the weekend is also a very interesting question, which we may find out rather soon. If they do hang onto it through the weekend, then this short-term rally has more legs. If they do not, then it’s likely that we drop back down to the 11,000 level given enough time as it would open up the possibility of consolidation.

S&P 500 Forecast: Takes Off After CPI Number

Keep in mind that the market is extraordinarily emotional, and volatility continues to be a major feature.

• The S&P 500 has taken off to the upside after the CPI number in the United States came out lower than anticipated.
• The CPI number month over month ended up being 0.4%, instead of the expected 0.6%.
• Because of this, it’s likely that traders are starting to focus on the idea that the Federal Reserve might slow down its interest rate hiking program. If that’s going to be the case, then it does make a lot of sense that we would see stocks rally.

Waiting for a Recovery

I think at this point it’s very dangerous to get heavily involved in the market, but it looks like the short-term target is probably going to be closer to the 4000 level. It’s also worth noting that the 4000 level is an area where it is not only a large, round, psychologically significant figure, but it is also where the 200-Day EMA is currently sitting. In other words, there are a lot of reasons to think that perhaps the technical traders out there will be aiming for the most obvious target.

Because of this, I think you got a short-term opportunity, but if we fail at the 200-Day EMA, that might be as far as we go. On the other hand, if we break above the 200-Day EMA, it’s likely that we have a much more significant recovery. I do not think this is a trend change though, so keep that in mind as the market has been full of more than once.

For more forex gold Indices analysis, Signals, and Account management services text me on my telegram: Claramellor

Best Forex Signal telegram

Forex Account Management Services

#Singapore #Dubai #Brasil  #UAE #USA #Amsterdam #Brussels #Dublin #Lisbon #London #Paris #fx #fxinvestment #fxanalysis #fxtrader #scalping #xauusdgold #xauusdsignal