Courtesy of John Nyaradi.
The S&P 500 will likely rise on Thursday
I predict a rise for the S&P 500 (NYSEARCA:SPY) on Thursday, based on the notion that investors may feel a glimmer of hope coming out of Washington. The S&P 500 (NYSEARCA:SPY) added .06% yesterday, the Dow Jones Industrial Average (NYSEARCA:DIA) added .18% yesterday, and the NASDAQ 100 (NASDAQ:QQQ) lost .46% yesterday.
Every one of my instincts suggests a market tumble tomorrow, but I believe markets will rise due to new glimmers of hope in Washington to possibly end the US Government Shutdown and debt ceiling debate temporarily. Although talks seem to center around a temporary re-opening of the Federal Government with the promise of budget talks afterwards, the mood has appeared to shift from a “possible default” to a “possible re-opening.” And, we have a new, extremely dovish Chairman of the Federal Reserve, Janet Yellen. Yellen has to count for something positive in these current markets!
Technically speaking, the S&P 500 (NYSEARCA:SPY) looks as if it will continue to crash and burn, as the index has dropped well below its 50 day moving average and could sell off even more. The MACD in particular currently offers a strong omen for negative declines, as the MACD is at a -5.640 and continues to get deeper:
chart courtesy of stockcharts.com
Internationally, European markets finished red yesterday, and the Nikkei Index finished well into the green. The Hang Seng was negative again. A mixed bag as far as I am concerned.
US Futures Markets are through the roof however, suggesting higher prices tomorrow at the time of this writing.
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