Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Drop After Iranian Comments

NASDAQ 100 Technical Analysis

The Nasdaq 100 has broken down significantly below the 30,000 level to show signs of extreme weakness, more than filling the gap from several sessions ago, as the Iranians are now saying that the Strait of Hormuz will be administered by Tehran. If that is, in fact, a demand coming out of Iran, that means trouble, and that almost certainly would be unacceptable to the Americans, and therefore, we remain stuck.

With that being said, the 50-day EMA and the 28,500-level offer support, so maybe we get a couple of bad days here. Regardless, even if we do that, it’s still just a market working off the froth from the straight shot higher we got at the end of March, all the way until just a few weeks ago.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has pulled back a bit during the early part of the trading session at this point. We’re still pretty close to the all-time highs. I think you’re just seeing a market that doesn’t really know what it wants to do with itself in the short term.

Longer term, we’re still in an uptrend. That won’t change until we get well below the 50,000 level at the very least, so I look at pullbacks still as buying opportunities in this market. If we can break above the 52,250 level, that frees the market to go much higher.

S&P 500 Technical Analysis

The S&P 500, of course, has taken it on the chin as well. It looks like we’ll be reaching down toward the 50-day EMA and the 7,300 level. Those are areas that I would expect to see support.

Again, this is like the Nasdaq. In fact, some of the same companies are pushing both indices at the moment, and I think this is a scenario where we’re just working off a massive amount of froth after a shot straight up in the air. When you look at the chart, if you did not know that there was a conflict between the Americans and the Iranians, you would look at it as consolidation after a huge move higher. I really think that’s all this is.

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