NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Recover in Premarket

NASDAQ 100 Technical Analysis

The Nasdaq 100 has gapped higher to kick off the week after the trade tensions between China and the United States seemed to have calmed down over the weekend. That being said, we still have the specter of the 25,000 level above causing a bit of a headache, and it is possible that we have a situation where traders are going to be looking at 25,000 as a very difficult barrier to get above. If we do, then I think we will continue the overall uptrend.

Quite frankly, this is a market that just tested a major uptrend line, stopped right at it at the end of the day, and then it looks like we are basically trying to confirm that we continue to see buying pressure. That being said, if we were to break down below the bottom of the candlestick from Friday, that’d be a very bad sign. The 50 day EMA being broken would, of course, have people running for the hills, and it’s possible 23,250 could be targeted.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has broken a trendline during the trading session on Friday, but it does seem to have found support at the crucial 45,000 level. And then, of course, to open the Monday session, it has gapped higher to clear the 50 day EMA as well. So, I think at this point in time we will probably see more of a buy on the dip attitude. Unless, of course, something changes with the US-China relations. But we’ve seen both acquiescence of the US position and the Chinese position. So, I think it’s probably going to end up being a situation where this becomes nothing of importance.

S&P 500 Technical Analysis

The S&P 500 also gaps higher to kick off the trading week, to jump back into the previous consolidation area. So now you have to look at the trend line that is being formed, which coincides quite nicely with 6500. 6500, of course, is a large, round, psychologically significant figure, and it looks to me like we are going to continue to offer that as support. The 50 day EMA sits just above there, and I think that offers a nice floor in the market. At this point, the market rallying then, perhaps goes looking to the 6800 level. All things being equal, this is a market that I think continues to attract inflows as long as we don’t get a shock over the news, buyers, as we did on Friday.

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