Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Likely to Wait for Islamabad Talks

NASDAQ 100 Technical Analysis

The Nasdaq 100 has rallied slightly during the early hours here on Tuesday, but at the end of the day I think we’re probably somewhat in a form of stasis here as we’re waiting to find out what’s going on in Islamabad and whether or not those talks provide some type of fruitful resolution between the United States and the Iranians.

It’s probably a little early to make that decision right now, but I think you’ve got to look at the 26,250 level underneath as a potential floor in the market. I think if we get good news, it might be somewhat of a muted reaction, the market has already sniffed this out, so I think that’s what we’re expecting before it’s all said and done.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks healthy. At this point, I think you have to believe that the Dow Jones 30 is going to get to the 50,000 level. The 50,000 level is an area where a lot of people will be trying to break through, as it’s a large, round, psychologically significant level.

Pullbacks at this point in time should continue to see 49,000 as a little bit of a floor. Ultimately, I think you have to be very positive so far and understand that anytime we pull back, it is a scenario where traders are trying to build up the necessary momentum, but we are a little stretched.

S&P 500 Technical Analysis

The S&P 500 is hovering around all-time highs. A pullback here would not surprise me at all. 7,000 should be your floor, to the upside 7,200 would be the next logical target. But again, I think we’re just waiting to find out how the talks in Islamabad play out, and with that, a little sideways action makes a lot of sense.

I think it would be healthy, quite frankly, we’ve gone straight up in the air for the most part in the last 3 weeks, so look for a dip, that dip should end up being a buying opportunity.

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