Nasdaq, Dow and S&P 500 Forecast: Bulls Target More Upside

NASDAQ 100 Technical Analysis

The NASDAQ 100 is up a little bit in early trading on Thursday as we are challenging the 50-day EMA. If the 50-day EMA gets broken yet again, it could open up a little bit of buying pressure, but keep in mind that Friday is Nonfarm Payroll Friday, and that could have big ramifications as far as interest rate expectations are concerned, which can weigh on technology. That being said, though, it’s worth knowing that this is a market that’s been very resilient, even though rates in America have been extraordinarily high. It still looks bullish to me.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has been very strong in early trading and looks as if it is trying to break to the upside. The 54,000 level above is an area of potential resistance as a ceiling. It also looks as if the 50-day EMA has offered enough support that traders are willing to take a flyer to the upside.

With that being the case, I like the idea of buying dips. I think there are quite a few things working in favor: the 50-day EMA, the idea that the economy is still strong despite the fact that we have higher interest rates.

S&P 500 Technical Analysis

The S&P 500 looks positive in early trading as well. Looks like a bounce from the 50-day EMA, and the previous resistance barrier at 7,600 has, in fact, come into play. With this, we do have to keep in mind that the jobs report comes out on Friday, but it looks as if we are willing to at least attempt to continue the consolidation we’ve been in for a couple of weeks. This is an uptrend. It goes from the lower left to the upper right. There’s no real disputing that. And as a result, I look at this as a bullish market. I only look to go long. I have no interest in shorting this.

If you’d like to know more about technical analysis and how traders use it, please visit our educational area.