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

NASDAQ 100 Technical Analysis

The Nasdaq 100 finds itself positive yet again on Friday as traders are continuing to press for the idea that perhaps the situation in the Middle East will finally calm down. After all, the Iranians are sending a foreign minister to Islamabad Friday night, so that helps risk sentiment, but really, it’s very difficult to chase this market.

I really need to see a pullback in order to get long again. We did get that during the session on Thursday, but it is still pretty overdone. The 26,250 level for me continues to be the floor. Clearly, you cannot get short of the Nasdaq 100 anytime soon.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues to consolidate in general, and I think the 49,000 level is an area that people will be watching closely. The area between 49,000 and 50,000 continues to be an area of consolidation. If we were to break down below the hammer that formed on Thursday, we could go looking to the 48,000 level.

Interest rates are a little bit elevated, but they’re starting to drop again, so that helps the market. But quite frankly, a headline could change everything. So be cautious, there are a lot of games being played in the public when it comes to the negotiations between the Americans and the Iranians, which has a major influence on the bond market.

S&P 500 Technical Analysis

The S&P 500 finds itself rallying again during the session and has touched a new all-time high. Short-term pullbacks, I think, continue to be buying opportunities with the 7,000 level being a large, round, psychologically significant figure and a floor based on the previous resistance. I do not have any interest in shorting this market and I do think eventually we will go higher, but I would love to see more sideways action to work off some of the froth that had been brought into this index.

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