Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Drift Lower Early

NASDAQ 100 Technical Analysis

The Nasdaq 100 has pulled back just a touch in early trading on Thursday as we continue to see interest rates drive where we’re going but we’re overbought anyway. I mean, look at this chart. This is ridiculous. So, a pullback would make a certain amount of sense but we’re already starting to see those yields drop a little bit and it is pushing more money back into Nasdaq.

So, somebody somewhere is buying. The 26,250 level continues to be a major floor in the market. It looks like we’re trying to go even higher, maybe trying to get to the 27,000 level in the short term.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks a little more tenable in the sense that we are in the midst of consolidation and have seen the 49,000 level offer a bit of a floor. I think this is probably an easier trade to take to the upside than the Nasdaq. But again, it is somewhat overbought as well. We spent a couple of days in consolidation, so you at least have that going for you. A breakdown below the 49,000 level could open up a move down to 48,000 but it doesn’t look like we’re ready to do that.

S&P 500 Technical Analysis

The S&P 500 has been going sideways for a couple of days. Short-term dips continue to be bought into. I think you’ve got a scenario where traders look at this as value each time it drops. I don’t want to get short here at all. The 7,000 level should be an absolute floor in this market from what I see.

Interest rates again will be a major player. If the 10-year yield in America drops below 4.3%, that’ll send the S&P 500 and pretty much any other index or risk asset higher. If we drop to the 7,000 level, I’d expect to see a lot of interest in buying this market again.

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