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

NASDAQ 100 Technical Analysis

The NASDAQ 100 rallied pretty significantly overnight in pre-market trading on Thursday. The market is now attempting to break back above the 20,000 level. And quite frankly, I don’t think we’re too far from breaking out at this point. That doesn’t mean that it happens easily, nor does it mean that it happens quickly.

But I do think that we are in a scenario now where traders are really starting to look at this through the prism of perhaps taking advantage of the momentum then in the market. Furthermore, there’s a lot of confluence in this area with the 200 day EMA sitting at the bottom of the candlestick for the day and the 50 day EMA sitting at the bottom of the candlestick for Wednesday. Combine that with 20,000 and you have an area where a lot of action could happen.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has rallied as it looks like it’s trying to take on the 200 day EMA, an indicator that obviously attracts a lot of attention. If we can break above there, then we will attack the 42,000 level, an area that, of course, is a large round, psychologically significant figure in an area where we had formed the bottom of the massive M pattern or double top at the turnaround at 45,000. I do think that we’re in an area where we could see some trouble. So be advised that choppiness is probably more than norm here.

S&P 500 Technical Analysis

The S&P 500 has rallied during the session as well, as New York comes online, it will see the S&P 500 closer to the 5,700 level. And if we can break above here, then the S&P 500 could very well go looking to the 5,800 level above there, which is an area that’s been important a couple of times over the last several months. I think ultimately this is a market that we’ll try to recover despite the fact that the Federal Reserve isn’t really sure what they’re going to do and as a result, that cheap money may not be the main reason for markets going higher. It might just be the fact that it’s not the end of the world as was predicted just two months ago.

For a look at all of today’s economic events, check out our economic calendar.