Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – Buy-the-Dip Mood Holds at High Levels

NASDAQ 100 Technical Analysis

The NASDAQ 100 looks like it is going to rally just a touch in the trading hours on Wednesday. The pre-market of course has been very positive. I think short-term pullbacks offer the opportunity to buy cheap contracts. The 26,250 level is an area that I think I would expect support at and could be your short-term floor. If the market were to go higher from here 27,000 is the next logical target.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is slightly positive and again it is I think more or less a market that is waiting for good news out of the Middle East. The good news from the Middle East is at least we are not a huge, massive war expanding at this point and I do think that traders will continue to look at this as an opportunity each time it drops.

The 49,000 level I think is your floor. 50,000, obviously a major psychological barrier that we will have to watch.

S&P 500 Technical Analysis

The S&P 500 is not performing all that strongly during the early hours. It is up a little bit, but I think really at this point we are just in a wait and see type of pattern.

The 10-year yield in America is below the 4.30 level again and that of course means something as the yields had been a killer for the indices at times. But recently we have seen a little bit more relaxing, and I think that probably continues to be the case. I like the idea of buying these indices on dips. I do think over the longer term we go much higher and we target 7,200 but I do not necessarily think it is going to be overnight. I think you will get plenty of opportunities to pick up value.

If you’d like to know more about chart patterns and how to trade them, please visit our educational area.