Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Soften Early

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially tried to rally a bit against the backdrop of a lot of concern early on Tuesday in electronic overnight trading but has failed. That doesn’t mean that we’re falling apart here, just that there are still plenty of headwinds for the markets, and it should be noted that we failed right at the 200-day EMA.

Reports are that the Americans have started to escalate again against the Iranians, and this, of course, would have some war jitters. The market continues to pay attention to the interest rates in the United States, currently at 4.345% in the 10-year yield, which is a little elevated and that tends to work against technology stocks. So it lines up pretty closely to orthodox here that the previous support level at 24,250 is offering a bit of resistance.

Dow Jones 30 Technical Analysis

The Dow Jones 30 also has pulled back a bit after trying to punch through the 200-day EMA. It has a barrier that I believe extends all the way to 47,000, so it may take some work to get above there, but if and when we do, that could launch the next great recovery.

It’ll be interesting to see how this plays out. All things being equal I think right now we’re more or less in consolidation in the middle of trying to attempt to turn things around and that takes time. So, a little bit of patience probably goes a long way. I still like the idea of buying dips, but I also recognize that position sizing will be important.

S&P 500 Technical Analysis

The S&P 500 is pulling back below the 200-day EMA, but it finds itself very comfortable right around the 6,600 level and that might be something worth paying attention to. After all, this is a market that has been under a lot of pressure, but considering everything that’s going on, it really hasn’t fallen apart the way a lot of people would have anticipated.

Because of this, I do think eventually we will go higher and I like the idea of buying short-term pullbacks, but I also recognize that it has a lot of work to do. In this environment, choppy behavior and news-driven moves are probably to be expected. I’m bullish, but I’m also realistic.

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