Dow Jones 30 and NASDAQ 100 Forecast August 2, 2017, Technical Analysis

Dow Jones 30

The Dow Jones 30 rally during the day on Tuesday, reaching towards the 22,000 level the pulling back as the area offered a bit of psychological resistance. It looks as if we are starting to see a bit of support though, so I think that we will continue the uptrend given enough time. Pullbacks should continue to offer buying opportunities as they represent value more importantly. The 22,000 level is a psychological resistance barrier, but I think that there is nothing particularly interesting about the level to keep the market from going higher. Earnings season has been good, and that should continue to push this market to the upside.

Dow Jones 30 and NASDAQ Index Video 02.8.17

NASDAQ 100

The NASDAQ 100 broke above the 5900 level during the day, but then pulled back again. However, when I look at this chart it looks very similar to the uptrend channel that we see in the S&P 500. Because of this, I believe that the buyers will return, and that it’s only a matter of time before they pick up value below. I think that the market is a “buy on the dips” market, unless of course we break down below the 5850 level, which for me would be catastrophic. In the meantime, I think that short-term bursts to the upside is probably about as good as it gives, as we continue to await the vital jobs number on Friday. We do get the ADP numbers coming out during the day today, and that could cause a bit of noise.