NASDAQ Index, Dow Jones 30 and S&P 500 Forecasts – US Indices Continue to Attempt Recovery Early

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially tried to rally a bit during the trading session on Wednesday, reaching close to the 200-day EMA before pulling back. All things being equal, the market is likely to continue to see a lot of volatility and of course, we are getting conflicting comments coming out of the Middle East, where now it appears that the United States is claiming that the Iranians have asked for a ceasefire, while the United States says it will not happen until the Strait of Hormuz is open. This will probably cause more volatility.

Failing at the 200-day EMA at least so far is a technically negative signal, so we’ll have to see how this plays out. I’d be very patient here. I think even if we do turn around, it’s probably a buy on the dip opportunity, so therefore you probably have plenty of time.

DOW JONES 30 Technical Analysis

The Dow Jones 30 did test the 200-day EMA, and then touched it and pulled back a bit. I think the 47,000 level is going to be an area that is massive resistance. If we can break above there, then it opens up the possibility of a move to the 48,000 level. I think short-term pullbacks are buying opportunities, but expect very choppy behavior. I do not expect a clean move higher with anything other than an end to the war.

S&P 500 Technical Analysis

The S&P 500 also reached the 200-day EMA, and just like the Dow Jones 30, the S&P 500 fell from there. I think we have a situation where we probably drop for a while but if there’s any type of positive coming out of the Middle East, I suspect rallies will commence. A move solidly above the 200-day EMA by the end of the day could be a very positive sign, so stay tuned.

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