Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Rally on Dropping Rates

NASDAQ 100 Technical Analysis

The Nasdaq 100 raced higher as word came out that the United States and Iran might be getting closer to some type of agreement, but we have since given back some of those gains. Rates dropping, of course, is a major factor, but I would also point out that there are some, especially microchip-type companies in the Nasdaq, which are screaming higher, so that probably gives it a little bit of stability.

I think a pullback here, though, quite frankly, would be welcomed even by the bulls because you can only go straight up in the air for so long despite the fact that it doesn’t look like the Nasdaq is convinced of it. I like buying dips. I’d love to buy somewhere around 27,500, but that’s 800 points shy of here to the downside. I don’t know if I get it, but the one thing I do know I won’t do is chase.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is a little bit of a different beast in the sense that it tested the crucial 50,000 level, an area that obviously has a lot of psychology attached to it. And with that, I think you have to look at this through the prism of whether or not we have enough momentum to break out.

If this one breaks out, I’m not as concerned because it’s not overdone. It does look like we could very well pull back, though, and with that, I think we have a situation where buying on the dip probably works quite well here, maybe a red day or so.

S&P 500 Technical Analysis

The S&P 500 continues to grind higher, and much like the Nasdaq, it is overstretched. I get it, rates are lower, that’s a good thing, but that’s not something that’s going to be sustainable for very long because we are in the midst of earnings season. I think that also has a large part to play here. I like buying dips right around 7,200 maybe, but I want to see a little bit of value. I don’t want to just chase at the highs and then have to sit on this for weeks. A little bit of patience goes a long way here.

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