NASDAQ Index, Dow Jones 30 and S&P 500 Forecasts – US Indices Continue to Chop Early on Friday

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially rallied during the early hours on Friday but gave back gains, sitting just below the 25,000 level. If we can break above the 25,000 level, it would be bullish and I do expect this market to probably turn things around before it is all said and done because we also have GDP numbers beyond the core PCE numbers.

You had a bit of a mixed bag there. The advanced GDP is 1.4 but nobody really knows if that is a good reading or not because there is a partial government shutdown. At the same time, you got core PCE price index coming in at 0.4 which was hotter than anticipated.

So, will the Federal Reserve hold rates? I think by the time it is said and done, this ends up being nothing and then we focus on the 25,000 level again. If we can break above there, the buyers get involved.

US 30 Technical Analysis

The Dow Jones 30 gave up early gains, but we continue to see a lot of support near the 49,000 level and at this point I don’t think there’s any reason to overly concern yourself with the trend. The 50-day EMA sits right there as well, so a couple of different things are going on at the same time.

I like the idea of buying pullbacks and jumping in on the bounces on the right-hand side of the V so that we can take advantage of what’s been in a very strong uptrend, the Dow Jones 30.

S&P 500 Technical Analysis

The S&P 500 initially tried to rally breaking above the 50-day EMA but then you can see gave back. The 6,800 level of course is an area that’s been important more than once and I do think that when we pull back a bit and bounce, I’d be looking to buy here as well.

We’ve been sideways for months and quite frankly we just need something to get the markets moving. If you’re a short-term range-bound trader, then you have the potential to take advantage of short-term range-bound trade systems. That’s probably the route to go at this point.