Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Could Drift into the Weekend

NASDAQ 100 Technical Analysis

The Nasdaq 100 has gone back and forth during the trading session on Friday in early trading, as it looks like we are probably going to be pretty noisy. After all, we’ve got the big SpaceX IPO, which is going to throw Wall Street into chaos, at least in the beginning of the session. But nonetheless, even if we do fall from here, I think it’s becoming obvious that the 50-day EMA is an area that people are watching very closely.

If that ends up being the case, then I think you have to look at this through the prism of a market that is trying to consolidate. The 30,000 level above continues to be a bit of a barrier that is worth watching. Breaking above there opens up a much bigger move, but I suspect heading into the weekend, we probably see a lot of back-and-forth trading as headline risk is major.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues to perform quite well. I think you’ve got a situation where traders are going to continue to look at short-term dips as buying opportunities, with the 50-day EMA sitting just below the 50,000-level offering a bit of a trend line. I have an interest in buying dips as they occur. I do believe that you have to watch the 10-year yield in the United States. If it starts rising again, that can cause some downward pressure, but all things being equal, we are for the most part moving somewhat independently of that recently.

S&P 500 Technical Analysis

The S&P 500 rallied a bit but is starting to give up some of the early gains. I think a pullback towards the 7,300 level invites more buying, with the 50-day EMA and structural support sitting just below there. To the upside, the 7,500 level is resistance.

I would not be surprised at all to see this market be very choppy on Friday with a lot of fear out there in the sense that what could happen over the weekend with headlines. So, by all means, be careful. Buying dips, generally speaking, has worked.

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