NASDAQ, Dow Jones and S&P 500 Forecasts – US Indices Trying to Recover on Monday

NASDAQ 100 Technical Analysis

The US indices look as if they are trying to recover on Monday after President Trump put out several positive signs for the conflict in the Middle East right at the Asian open. It will be interesting to see how this plays out because we’ve seen this a couple of times in the past with the Iranians refuting this information, but they don’t seem to be now.

The Nasdaq 100 gets a bit of a reprieve because it is so sensitive to the interest rate markets that dropping interest rates does help the idea of some of the high-flying technology companies recovering. That being said, I don’t trust the Nasdaq 100 until we break much higher, at least 23,800, before I really start to trust the rally. Keep in mind really at this point in time, it’s all about the next headline coming out of the Middle East.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks like it’s trying to recapture the 45,750 level. For me, I think the Dow Jones 30 probably does better than the Nasdaq in this environment, at least initially. They are blue-chip stocks after all and you’re not going far out on the risk spectrum to take advantage of whatever the latest noise is coming off of Twitter or the newswires or wherever. That being said, it does look like 45,000 is at least trying to hold as a floor, so that is a positive sign.

S&P 500 Technical Analysis

The S&P 500 will be watching the 6,500 level very closely. If we can recapture that, it would be a good sign, but unfortunately, we just don’t know when the next headline hits. We’re in an environment where every headline that comes out can potentially cause chaos for indices worldwide. They are typically timed very coincidentally to markets opening, or if they get a little too hot, the Iranians will turn it down a little bit.

I think really what we’ve got is a situation where the US and Iran are not only throwing missiles at each other, but they’re playing games in markets such as oil and the stock market. As long as that’s the case, you will have to be cautious.