Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Continue to Grind Higher

Nasdaq 100 Technical Analysis

The Nasdaq 100 rallied a bit during the early part of the Friday session, but let’s be honest here: the market is overbought. We did just break a fresh new high, so I think longer-term traders are just simply going to jump in and hang on to this.

Short-term pullbacks, I think we’ll have to see whether or not the 26,275 level offers support, as it was previous resistance. We could dip even further and bounce and offer a buying opportunity as well. So, we’ll have to see how that plays out. The 26,000-level underneath is going to be an area of importance also and, in this environment, really what I want to see more than anything else is some sideways action.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is grinding higher. It’s probably not as overbought as Nasdaq, with the 49,000-level offering a potential target and possible resistance. I think that might be where we start to head to. This is a buy-on-the-dip market. I don’t see anything on this chart that tells me I should be selling it.

The 48,000 level right now looks like it could end up being a significant support level, with the 50-day EMA sitting just below there offering support as well.

S&P 500 Technical Analysis

The S&P 500 has taken off to the upside and it’s just going straight up in the air. It is starting to lose some of the momentum, so I think if you’re patient, you probably get a couple of red days that you can start buying into. That’s my plan. I don’t necessarily want to buy heading into the weekend in an overbought market anyway.

At the very least, I’d like to see 7,000 tested as support on a pullback than I can take advantage of. In the short term, probably more or less a market that you want to sit on your hands because the further it goes and the more that the FOMO builds, the more likely we are to have a pretty significant pullback.

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