Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – Two of Three Indices Stretched

NASDAQ 100 Technical Analysis

The Nasdaq 100 is just kicking around in a very tight range pre-market on Monday as we are trying to sort out where to go next. That being said, the Nasdaq 100 is extraordinarily overbought at this point, and I do think that sooner or later we will see some type of pullback.

A lot of noise in the Middle East could be the main factor for that; we will just have to wait and see. I think the 28,500 level is an area where a lot of people will be watching closely to see if there is support.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is pretty flat during the trading session here on Monday, as we are starting to perhaps try to dig out a little bit of a range here, with 50,000 above being a major barrier.

If we can break above the 50,000 level, then I think that opens up a much bigger move. Short-term pullbacks at this point in time continue to see support near the 49,000 level. I am bullish on US indices, and I think at this point in time the Dow Jones Industrial Average is a little bit of an outlier in the sense that it is actually consolidating, so this is not as overbought.

S&P 500 Technical Analysis

The S&P 500 is pretty quiet as well and I think you have a situation where short-term pullbacks probably offer buying opportunities, especially near the 7,300 level. The 7,500 level is a target as far as I can see, and I think, given enough time, we will probably get there, but a little bit of value being offered on the occasional pullback is, of course, something that I think you would be looking forward to as well.

If you’d like to know more about chart patterns and how to trade them, please visit our educational area.