NASDAQ 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Continue to Bounce Around

Nasdaq 100 Technical Analysis

The Nasdaq 100 has the look of a market that is just trying to drift a bit to the downside, but really, at this point in time I think it’s a market that is just looking for some type of momentum or some reason to get going to the upside. The 25,000 level continues to loom large as being important, and of course, we have the 50-day EMA between here and there.

Any bounce at this point in time will be thought of as a potential buying opportunity, and the 26,000 level is an area I’m watching because if we can break above there, it probably kicks off the next leg higher.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks like it’s going to be a little soft at the open as well, and again, I think this is mainly a symptom of it being so thin and it being the time of year that it is. And therefore, I think you have to look at the 48,000 level as a bit of a floor. We have the 50-day EMA racing towards there as well, so that suggests that we are in fact, going to see support come into the picture sooner or later, and I think the correct way to look at it is sooner. But thinking that people are going to throw a lot of money at the market right before the end of the year is probably a bit foolhardy anyway.

S&P 500 Technical Analysis

The S&P 500 has pulled back just a touch as well, but again, it’s just hovering. It’s not really doing anything that concerns me. I think at this point in time, it’s a simple lack of enthusiasm because most people are more worried about New Year’s. This small pattern that we’ve created over the last two weeks could be considered a bullish flag, but I don’t really need that to tell me this is in an uptrend anyway.

This is an uptrend that’s been very strong since April. We have slowed down a bit here recently, but again, after the type of move we had all year, why wouldn’t we? I think 6,800 continues to be important support, especially now that the 50-day EMA is there and showing up as a potential pseudo trendline.

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