NASDAQ 100, Dow Jones 30 and S&P 500 Forecast – US Indices Continue to Look Bullish

NASDAQ 100 Technical Analysis

The NASDAQ 100 continues to look bullish as we have threatened the top of the previous candlestick. But it is worth noting that we are fighting the 20,000 level right now, and this is an area that I think continues to cause a bit of headaches. With that being said, I think you have to look at this through the prism of a market that is going to be very noisy, but I also think that it is a market that could go looking to the 20,300 level if we remain this bullish. I suspect we are getting a little short-term stretched, a little bit of digestion probably would do wonders for this market.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has shown itself to be pretty bullish, but I think the 50 day EMA is going to continue to be a major problem. If we can break above the top of the candlestick, then I think we’ve got a situation where we could go looking to the 200 day EMA. And I do think we will get there eventually. The Dow Jones 30 has outperformed a couple of the other indices for the most part recently, although it is worth noting that with the jobs number coming out basically neutral, this means that the economy seems to be doing reasonably well but not going so hot that the Federal Reserve is painted into a corner. There is word that China wants to negotiate, and if that’s the case, that should help all indices.

S&P 500 Technical Analysis

The S&P 500 has broken above the top of the shooting star from Thursday as well, and we are trying to breach the 200-day EMA. I think at this point, again, this is a situation where we probably need to go sideways and work off some of this excess froth. The market then could find itself going to the $5,800 level, which was the next swing high. I think short-term pullbacks at this point in time probably end up being buying opportunities, with a 50-day EMA sitting just below the 5,600 level. I would not be a seller of this market, rather I prefer to buy on dips.

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