Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Pull Back Early on Friday as Rates Jump

NASDAQ 100 Technical Analysis

The Nasdaq 100 fell a bit during the trading session here on Friday to test the 29,000 region, an area that, of course, is a large, round, psychologically significant figure and an area that I think continues to be important for traders overall.

As rates rise, it puts more pressure on technology stocks, and quite frankly, it makes a certain amount of sense that we are struggling. I think we are due for a pretty significant pullback. That doesn’t mean we will get it, it doesn’t mean that you should be shorting the market, but I think moves like this should make a lot of sense to you. If we break down below the 29,000 level, I think we go looking at 28,600, followed by 28,000.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has pulled back a bit early during the trading session here on Friday as the 50,000 region continues to be a major problem. If we can break above there and get to the 50,500 region and take that out, we are at all-time highs again.

This is a market that is struggling a bit. It is forming a little bit of a compression pattern here. We will see if it breaks down. It could drop to the 50-day EMA pretty quickly.

S&P 500 Technical Analysis

The S&P 500 gave back any hints of rallying, but I would also point out that again, it is the same situation. Interest rates continue to climb and that works against the value of stocks. Equity traders do not like those high rates and therefore protest.

The 7,300 level could be targeted at a pullback. That is an area that has been important more than once, so we will just have to wait and see. I do think at this point in time, though, we need to pay close attention to any bounce and try to get involved on the right-hand side of the V if and when it occurs.

Otherwise, if the 7,300 level doesn’t offer support, we could be talking about 7,100. And quite frankly, that would be a healthy move. This is a market that has gone straight up in the air, and eventually, gravity does get into the picture.

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