NASDAQ 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Fall After Speech

NASDAQ 100 Technical Analysis

The US indices look as if they are trying to do everything they can to fall apart in early trading on Thursday, with the Nasdaq 100 breaking below the 23,800 level being a prime example. We did pull all the way up to the 200-day EMA only to fail, which, from a technical analysis standpoint, makes sense, but a lot of this would have been driven by the speech overnight that Donald Trump had given.

It suggested that perhaps the war in Iran would last several more weeks, and that, of course, has a more risk-off attitude out there as interest rates in America spiked.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has fallen and again tested the crucial 200-day EMA at the end of the session on Wednesday, and has spent pretty much the entirety of Thursday falling apart.

With this being the case, I think you have to look at this as a market that is now threatening the 45,750 level, an area that previously has been supported. We’ll see whether or not it holds now. We have sliced through it a couple of times recently, so I don’t know that it is as important as it once was. With this, I believe this is a market that, given enough time, probably finds buyers, but I think choppy volatility remains the main story here.

S&P 500 Technical Analysis

The S&P 500 is now below the 6,500 level, but it does look like it’s trying to fight back and if that’s going to be the case, then we have a real shot at this market perhaps trying to get back to the 200-day EMA. It’ll be interesting to see how this plays out, though, because of course, panic is the way most traders approach the markets, and the fact that Trump gave a speech saying exactly what he’s been saying for 3 days seems to have thrown the market into disarray. So, a little bit of a head scratcher here. I do think you try to find value and take advantage of it when it occurs on some type of bounce.