Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Stalled but Bullish Overall

NASDAQ 100 Technical Analysis

The Nasdaq 100 gapped higher to kick off the trading week, fell a bit, and then bounced, and now we’re just kind of hanging out basically where we started. With that being said, this is a market that is a little overdone, and I think it is going to slow down a bit eventually. Short-term pullbacks, though, I think are buying opportunities where traders will try to find cheap contracts.

After all, the Nasdaq 100 has absolutely exploded over the last couple of weeks, and of course, there will be a lot of hot money chasing this index. That being said, you have to be very cautious because you could find yourself in a lot of trouble on some type of pullback that, quite frankly, could be a normal pullback. 27,000 is an area I’ll be watching if we do drop. I think 28,000 above is a major resistance barrier.

Dow Jones 30 Technical Analysis

The Dow Jones 30 fell pretty hard in the early part of the session, but it is bouncing quite a bit from that crucial 49,000 level. If it can stay bounced as it were, then we could go working our way back to the 50,000 level.

I think that is going to be a very difficult area to break above, but if and when we do, we really could start to take off. I think a little bit of working off of the froth is probably what’s coming here.

S&P 500 Technical Analysis

The S&P 500 gapped higher, pulled back and now is bouncing a bit and really even though it was stretched previously, the S&P 500 has been a couple of weeks going sideways and I think that’s important and that tells us that maybe it’s not as frothy as the Nasdaq 100.

The 7,100-level underneath continues to be a floor and most certainly the 7,000 level will be. I have no interest in shorting this market. I do think it will go higher eventually, but it might be more of a grind at this point after that massive move that occurred basically at the end of March all the way up until the middle of April. A little bit of calming down, more of a genuinely positive but steady market I think is what we’ll be seeing here.

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