NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Continue to Digest Previous Gains

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially fell a bit during the early hours on Thursday, but it does look like the 21,000 level is going to continue to offer at least a little bit of support. The market going sideways is not a huge surprise because quite frankly we went straight up in the air after the election.

So, working off a little bit of froth, quite frankly, is typical for a market that’s in a strong uptrend, but obviously has to obey the rules of gravity sooner or later. Speaking of gravity, even if we do pull back from here, I think there are plenty of areas that could offer support, not the least of which would be the 20,500 level and the 50-day EMA. slightly below that. On the upside, I think you are looking at the 21,500 level as the short-term target.

Dow Jones 30 Technical Analysis

Over here in the Dow Jones 30, it looks like it’s a little healthier as we are crossing the 44,000 level. Over the longer term, I do expect to hit the next major round figure, which of course is the 45,000 level. Short-term pullbacks continue to offer buying opportunities, especially near $43,000 and the 50-day EMA as well.

S&P 500 Technical Analysis

The S&P 500 has been a little sluggish in comparison to the others. Perhaps this is a function of earnings season, or perhaps this is just simply a market that’s struggling with a large round psychologically significant figure in the form of $6,000. Either way, it still looks bullish, and I look at pullbacks as potential buying opportunities in the S&P 500 as well as the other indices altogether.

Volume is typical. There’s really nothing that stands out from that aspect. So, if we pull back here, I expect the 5800 level and the 50-day EMA both to come into the picture to perhaps offer a bit of support. Longer term, I do think that we get to the 6200 level.

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