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

NASDAQ 100 Technical Analysis

The Nasdaq 100 has pulled back just a bit during the early part of the trading session on Tuesday, as the market is overdone by pretty much any metric you measure it by. Yields in America are climbing, and that, of course, has a major influence as well, so that’s not going to provide any help.

I think a pullback for a couple of days is actually what we need. I’m not interested in chasing the Nasdaq 100 after the move it’s made for 6 weeks of pretty much straight up in the air. If you’re buying up here, you are taking quite a bit of risk, although, full disclosure, I said that last week.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks quite a bit healthier. It is in consolidation, which is exactly where it needs to be after jumping the way stocks have recently. The 50,000 level continues to be a major barrier. I think that is going to be one of your trickier levels to get above, but if and when that happens 50,500 would be the next potential target. 49,000 offers support.

S&P 500 Technical Analysis

The S&P 500 has pulled back a bit during the trading session on Tuesday, as we are looking very much like a market that needs to pull back towards the 7,300 level. Again, I’m not willing to short the stock market, I just don’t want to chase it.

I want to find value on a pullback that I can take advantage of buying the right-hand side of the V as it will give me a bit of value and more importantly show that momentum is reentering the market as well as giving me a natural stop-loss placement area.

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