Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Pull Back Slightly on Tuesday

NASDAQ 100 Technical Analysis

The Nasdaq 100 has pulled back just a bit early during the trading session on Tuesday, as market participants continue to look at this as a market that is probably a bit overdone, and I do think that is probably a very realistic assessment of what has gone on. After all, we have gone up about 14% since the bottom, and that is really on nothing.

The fact that OpenAI has admitted in the last 24 hours that data center buildouts are basically overblown and certainly aren’t mathematically possible in the numbers that have been thrown around will have a detrimental effect on the Nasdaq 100 anyway. At this point I would anticipate that sooner or later we drop back towards the 26,250 level.

That is the previous resistance barrier and testing that for support makes a lot of sense. I would love to see a pullback to that area and then a bounce that I can take advantage of to the upside. We have the 28,000 level as a potential target but really don’t think we are getting there anytime soon.

Dow Jones 30 Technical Analysis

The Dow Jones 30 rallied a little bit in the early part of the session, but it is in the midst of consolidation to work off some of the excess froth that had been put into the market as of late. With this being the case, I think you have to look at this market as one that is essentially waiting to go sideways, 49,000 offering support and 50,000 offering resistance. I am pretty neutral on this one, but I think longer term it becomes bullish.

S&P 500 Technical Analysis

The S&P 500 is pulling back from all-time highs. We will see how this plays out. I think the dip should end up buying a bit of time for those remaining bullish and trying to get involved.

I would love to see a drop closer to the 7,000 level that we can take advantage of. So, with that being the case, I think the 7,000 level is your barrier to the downside. I don’t think we break down below there, but if we did, it would change a lot. Buying the dip is the strategy in these indices in general and I think that will play out quite nicely.

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