Dow Jones 30 and NASDAQ 100 Price forecast for the week of March 26, 2018, Technical Analysis

Dow Jones 30

The Dow Jones 30 broke down significantly during the week, as Donald Trump levied tariffs on the Chinese, and then of course they retaliated. It looks like the market is trying to price in some type of trade war, but I think that we currently need to pay attention to what happens over the weekend. I think that if the market gets bad news about the Chinese or the Americans escalating the trade war of the weekend, we will probably see the Dow Jones 30 break down to the 23,000 level. Otherwise, if we get good news, we could turn around and go to the 25,000 handle. This market is going to be especially sensitive, as so many major exporters are to be found in this index.

Dow Jones 30 and NASDAQ Index Video 26.03.18

NASDAQ 100

The NASDAQ 100 has fallen as well, breaking below the 6700 level. However, as we started to see the traders close out the positions for the week, we either were getting people buying, or simply closing short positions. I think that there are a lot of headline risks over the weekend, so can be difficult to determine where we go next. If we get cooler heads prevailing in this trade war discussion, then I think the Dow Jones 30 will rally. The 6500 level should be supportive, just as the 6200-level underneath there is as well. However, we may have a lot of noise between now and then to chew through, but on a supportive candle or a bounce I’d be willing to take advantage of it.