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

NASDAQ 100 Technical Analysis

The NASDAQ 100 looks as if it is going to drop during the trading session on Tuesday, which is not a huge surprise considering that the market has seen quite a bit of upward pressure. And of course, on Wednesday, we are about to get the FOMC meeting announcement. So, I would anticipate that a lot of people are trying to square up their positions. Tuesday could end up being a fairly choppy sideways day overall, because the real fireworks will start after the session on Wednesday. We are hanging around the 200 day EMA and it does look like the 20,000 level continues to offer a bit of a resistance barrier.

Dow Jones 30 Technical Analysis

Dow Jones 30 has found the 50 day EMA to be a bit of a brick wall at this point. And I think ultimately you have to have the thought process of a trader that’s looking for a dip as potential support and value. The 40,100 level should be support, but I also think the 40,500 level should be support as well. So, I’m looking to pick up a pullback that then bounces. As things stand right now, I don’t have any interest in shorting the market and I think it’s just a matter of waiting.

S&P 500 Technical Analysis

The S&P 500 is currently testing the 5,600 level, which, of course, is an area that is a large, round, psychologically significant figure and an area that a lot of people would be watching. If we break down below there, I see a lot of support all the way down to the 5,500 level through various explosive moves on short-term charts. If we can turn around and break to the upside clearing the 5,700 level, then it opens up the possibility of the S&P 500 going to the 5,800 level. I do believe that US indices are a little overdone, so a pullback certainly makes a lot of sense.

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