Dow Jones 30 and NASDAQ 100 Price forecast for the week of February 5, 2018, Technical Analysis

Dow Jones 30

The Dow Jones 30 has broken down during the week, showing signs of weakness. A lot of this is due to the market being overbought, and it looks likely that the market is going to go looking towards support underneath, which I see a in the form of 25,000. That’s a large, round, psychologically significant number, and of course an area that was previous resistance. I think that the market will find support there as it will offer “market memory.” A bounce from there would make a lot of sense, but even if we do break down below there, I think there’s also support at the 24,000 level.

NASDAQ 100

The NASDAQ 100 has broken down from the 7000 level this past week, showing signs of exhaustion. There is a lot of volume on this negative candle, so it means that we will probably go looking towards the 6500-level underneath, which was previous resistance. Ultimately, I think that the market probably finds plenty of support in that area, as it was massively resistive. I believe that the market will eventually find buyers, but quite frankly it has needed to see some type a pullback to offer value. I like buying the pullback on a supportive candle, which needs to be formed on at least the daily chart, if not the weekly chart. If we break down below the 6500 level, then things get a little bit dicey.

Dow Jones 30 and NASDAQ Index Video 05.02.18