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

NASDAQ 100 Technical Analysis

The Nasdaq 100 is slightly positive during the early hours of Monday, but really at this point in time, we have to keep in mind that the Nasdaq 100 is extraordinarily overstretched, and I do think it’s probably only a matter of time before we have to have some type of significant pullback.

That opens up the possibility of a pullback towards the 26,275 level. Maybe not quite that far, but I think that would be an excellent entry due to the fact that it was previously resistance. Ultimately, I do like the Nasdaq 100; I just recognize that we are a little overdone.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is fairly quiet Monday morning as it sits above the 49,000 level. It does look like it’s maybe a little stretched as well, but we’re in the process of having this market work off some of the froth that has been part of the trading situation over the last couple of weeks.

I think short-term pullbacks offer up the possibility of buying some value here, especially near the 50-day EMA. If we were to break down below the 49,000 level, I’d be looking at that 50-day EMA just above 48,000. This is the ideal entry, but we will have to wait to see if we get this pullback.

S&P 500 Technical Analysis

The S&P 500 continues to grind to fresh all-time highs. I think ultimately though, you’re still looking for a pullback in this consolidation to get involved. You don’t want to get overly aggressive here; while not as stretched as the Nasdaq 100, it is stretched, so let’s not forget that. I’m bullish, but I need to see a little bit of value. Chasing isn’t the way forward here, as it could cause large losses on bad headlines.

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