NASDAQ 100 Index, S&P 500 and Dow Jones Forecasts – US Indices Trying to Bounce After Overnight Selling

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially fell a bit during the overnight session as the KOSPI in Korea collapsed, but we’ve since seen a bit of a bounce, and it looks like the Nasdaq is showing signs of life—perhaps unconcerned about developments in Korea. We experienced a significant selloff over the last 36 hours or so, but we remain firmly in an uptrend. It’s also worth noting that some of the larger stocks are performing reasonably well in pre-market trading, which is encouraging. I believe the 25,000 level will act as support, making this a potentially viable dip, though we’ll have to wait and see.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has dipped slightly, but it appears that the 47,000 level is trying to hold. A bounce from here could send the market back toward 48,000, but again, we’ll need to see confirmation. Ultimately, this market continues to exhibit noisy behavior, and volatility remains a key feature rather than a problem. I still anticipate that the Dow Jones 30 will eventually break above the 48,000 level.

S&P 500 Technical Analysis

The S&P 500 has also fallen, only to turn around and show signs of strength again. That’s not surprising, as the S&P 500 now shares many of the same heavily weighted stocks as the Nasdaq. If we can break above the 6,800 level, it opens the possibility of a move toward 6,950, and beyond that, perhaps 7,000. I have no interest in shorting here; the 50-day EMA and the uptrend line should both provide ample support even if we do pull back slightly. Overall, I see this as a perfectly healthy, gently up-sloping trend that has been in place for months.

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