NASDAQ 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Attempting to Recover Again

NASDAQ 100 Technical Analysis

The Nasdaq 100 has rallied quite nicely in early trading, just as we had seen during the previous session, based on a random comment suggesting that Donald Trump was willing to end the war even if the Strait of Hormuz was still closed. I find that almost impossible to believe, but the market is buying the story for the moment.

So, with that being the case, you have to look at this as a market that will do whatever it can to rally. It definitely does not want to continue to see the negativity, and a little bit of a relief rally probably is due.

In fact, I thought that’s what was happening on Monday, but that was walked back pretty quickly. The 23,800 level could be an area that they’re aiming for, but we have a long way to go before we get there, so we are a little hesitant to get overly excited.

Dow 30 Technical Analysis

The Dow Jones 30 finds itself at a crucial level right now in the form of the 45,750 level. An area that has been important a couple of times in the past and therefore I think you do need to watch it very closely. If we break above there, we could go looking at the 46,000 level pretty quickly. Signs of exhaustion could be selling opportunities for those who are nimble enough for that reaction.

S&P 500 Technical Analysis

The S&P 500 looks like it is also trying to rally early during the session here on Tuesday, but the market is still pretty beaten down. It really isn’t until we get below the 6,300 level that I think you see continued bearish pressure, but I think a little bit of sideways action might make some sense here.

The 6,500 level above is an area a lot of traders will be watching closely but I think it’s going to be a bit of a fight to even get there during the session. I think you have to be very cautious here. I just don’t see a scenario in which you are advised to throw a ton of money into the market. It definitely needs to prove itself. We are most certainly bearish as of late. If this is the turnaround, you should have several days to join.