Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Still Sluggish in Premarket on Friday

NASDAQ 100 Technical Analysis

The Nasdaq 100 has drifted lower during the early part of the trading session on Friday to test the 50-day EMA, but it looks as if it is turning around to show signs of life. The 50-day EMA, of course, is an indicator that a lot of people will be watching, and below there, we have support at the $28,500 level.

This is a confluence of support that I think we’ll have to watch very closely. Ultimately, some type of bounce from there, I think, opens up the possibility of heading toward the 30,000 level yet again. This is a longer-term uptrend that has recently seen some sideways action, just simply working off, I think, some of the excess froth. This makes perfect sense.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is pulling back slightly during the trading session on Tuesday as we’re hanging around the 52,000 level. The 52,000 level of the course is an area that’s shown significant resistance multiple times. I think a short-term pullback makes a bit of sense, but overall, this is a market that I do think eventually will break above the high from the Thursday session, which showed so much promise. Dips at this point in time remain buying opportunities in a strong uptrend.

S&P 500 Technical Analysis

The S&P 500 dropped to test the 7300 level. The 7300 level is an area that had been significant support previously. I do think you’ve got a situation where the bounce from here just confirms some sideways action in a market that, quite frankly, needed to work off some of that excess upward momentum from a few months ago.

The 50-day EMA is right here in this neighborhood as well, so that’s offering support, and I am bullish of this market eventually. I think in the meantime, though, what we’re looking at is probably more of the garden-variety pullback and bounce setup.

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