NASDAQ Index, Dow Jones and S&P 500 Forecasts – US Indices Slumps Ahead of Fed Session

NASDAQ 100 Technical Analysis

The Nasdaq 100 tried to rally early during the trading session on Wednesday to test the 25,000 level but has failed yet again as it seems like the wall of death at this point. The 50-day EMA sits right there as well and breaking that would be a very bullish sign.

Ultimately, I don’t think you can read too much into the price action today, and I would ignore the stock market today at least until we get through the Federal Reserve interest rate decision and, more importantly, the press conference and statement.

I think there are a lot of traders out there just running from anything close to a challenge to the upward narrative, and as a result, you will continue to see a lot of weak, lackluster trading, at least in the short term. Buying the dip probably remains the strategy, but it’s not the easiest one to follow.

US 30 Technical Analysis

The Dow Jones 30 continues to sit right at the 200-day EMA, just killing time as traders, honestly, I think, have no idea what to do with themselves. If we can break above the highs of the session on Tuesday, that would be very bullish, especially if it’s after the FOMC decision and statement, as well as the press conference. I think more than anything else we’ll have to see how the market closes today to get a good read on it.

SP 500 Technical Analysis

The S&P 500, of course, has rolled over again as Europe and Asia have sold off in pre-market trading. That being said, though, most of the time it really doesn’t matter what the Asians and Europeans think; it’s really what happens during the open market that dictates where we go.

We’ve seen this for weeks, where Asians and Europeans will try to drive it up, and then they’ll panic, and then New York may come in and pick it up later in the day. It wouldn’t surprise me to see that today, but I’m not buying it, at least not until we get through the Federal Reserve, and then tomorrow, we have 3 or 4 other central banks speaking, so probably a good day to observe more than anything.