NASDAQ Index and S&P 500 Forecasts – US Indices Continue to Look Upwards

Nasdaq 100 Technical Analysis

The Nasdaq 100 has rallied a bit during the trading session in the early hours of Tuesday, despite the fact that we keep hearing about the sell everything American trade. At this point, we are getting ready to go deep into the earnings season, and I think that will set up quite a bit of potential volatility, but I still think this is a situation where short-term pullbacks almost certainly offer buying opportunities. The 50-day EMA offers support right along with the 25,000 level.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues to just bounce around, with the 49,000 level being a bit of a magnet for price. With that being said, I think you have a situation where, when we pull back, you have to look at this as a potential buying opportunity.

If we can break above the 49,600 level, then it opens up the possibility to get to the 50,000 level, which, of course, is a large, round, psychologically significant figure. I have no interest in shorting this market, but again, earnings season coming up could cause quite a bit of volatility.

S&P 500 Technical Analysis

Finally, in the S&P 500, it looks as if the 7,000 level is being challenged. If we can break above there, it opens up the possibility of a huge move to the upside of at least 200 points. This is a market that will continue to see a lot of noise, but in the end, we are still very bullish overall.

I also believe that this is a market that has a floor in the area of 6,800. As long as we stay above that level, I assume that we remain very bullish, very buy on the dip as we head through earnings season.

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