Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Continue to Rise on Friday

NASDAQ 100 Technical Analysis

The Nasdaq 100 breaks out to fresh all-time highs, and this, of course, is accompanied by interest rates dropping. This is a market that is overstretched and there’s no other way to look at it but it looks like it’s just going to continue to stretch higher.

It really comes down to your time frame. If you’re patient enough, it should be a market that you buy on dips, perhaps on the daily time frame. The 28,000-level underneath remains a significant support level that is waiting to be tested but there’s nothing on this price action that suggests we are going to break down to that area anytime soon.

This has been pretty remarkable, and I think it will continue to be so. With that, I like the idea of buying the Nasdaq, but I also recognize that sooner or later, gravity has to be acknowledged despite the fact that nobody seems to actually want to do that right now.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has rallied quite nicely during the trading session here on Friday in the early hours, as we have now gotten past the jobs number, which was hotter than anticipated, so evidently, traders aren’t too worried about the interest rate situation at the moment. And I think that makes a certain amount of sense because, quite frankly, with the energy shock, it’s hard to imagine the Fed was going to cut regardless.

So, with that, the 50,000 level continues to be an area that people watch very closely. It’s a large, round, psychologically significant figure and, of course, makes for massive headlines, so that in and of itself is probably part of the reason why it will be so intriguing, but we’ll have to wait and see whether or not the market will find its way through it or if we need to pull back a little bit before that.

I would not be surprised at all to see this market maybe kind of bounce around a little bit before finally squeezing through that level as rates continue to drop.

S&P 500 Technical Analysis

The S&P 500 has gapped lower and then took off again during the trading session and now is threatening the 7,400 level. The 7,400 level of the course is an area that would be a large, psychologically significant figure and a new area for the market, so we’ll just have to wait and see how that plays out, but likely, I think 7,300 is your short-term support. I like buying dips. Again, this is a market that’s overbought, but you could have said that for the last 3 weeks.

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