Dow Jones 30 and NASDAQ 100 Price Forecast January 31, 2018, Technical Analysis

Dow Jones 30

The Dow Jones 30 has sliced through an uptrend line on the hourly chart, breaking down towards the 26,000 level. This is an area that has plenty of support attached to it, and of course there is support below there as well, near the 25,000 handle. I believe in waiting for value underneath, and some type of bounce that is accompanied by volume. If we get that, I am more than willing to jump on this market, as it has plenty of bullish pressure, and of course the algorithmic traders have been picking up every time it drops.

Dow Jones 30 and NASDAQ Index Video 31.01.18

NASDAQ 100

The NASDAQ 100 has broken below an uptrend line during the trading session on Tuesday, breaking below the 6900 level at one point. We have bounced since then but are starting to show signs of selling pressure again. I think that we are going to continue to go back and forth, showing signs of noise and choppiness. We have seen a lot of volatility during the day, so that could signal that we are going to get a bit of a continuation of rolling over. I love this idea though, because I would be more than willing to buy closer to the 6800 level on signs of a bounce. Otherwise, if we break above the 7000 handle, then I think we go much higher and could start buying there as well. This market needs to pull back to build up the necessary momentum to clear 7000 handily, and I think that’s what we are starting to see. Be cautious, but I still look at this is a bullish market.