Dow Jones 30 and NASDAQ 100 Price Forecast October 3, 2017, Technical Analysis

Dow Jones 30

The Dow Jones 30 initially rallied on Monday, but then pulled back a couple of times as the 22,500 level offers resistance. It looks as if we can break above there, the market should continue to go much higher. At that point, I anticipate that the market goes looking for the 23,000 level above, and the pullbacks are the markets way of trying to build up momentum to finally break out. I have no interest in shorting the Dow Jones 30, as it has been rather bullish as of late as the sector rotation out of technology continues. I believe that the Dow Jones 30 will continue to outperform most other indices, but at the end of the day all US indices are going higher, so I don’t have any interest in shorting either way.

Dow Jones 30 and NASDAQ Index Video 03.10.17

NASDAQ 100

The NASDAQ 100 wells relatively flat on Monday, but we did try to break out at one point. Remember though, the NASDAQ 100 is heavily influenced by just a handful of technology stocks, so they have an extreme amount of influence on this index. With that in mind, I think that it’s probably best to stand on the sidelines, perhaps looking to buy the NASDAQ 100 at lower levels based upon value. I do think that we go higher given enough time, but it’s probably going to be volatile in this index, and it will almost certainly lag behind the Dow Jones 30 and the S&P 500. Ultimately, I think that we break above the 6000 level, but we are clearly not ready to do so yet. Every time we pullback, I suspect that the market is trying to build up the necessary momentum to finally make that move.