NASDAQ Index, Dow Jones 30 and S&P 500 Forecasts – US Indices Drop Again

NASDAQ 100 Technical Analysis

The Nasdaq 100 tried to rally early during the session, but we’ve seen increased rhetoric coming out of the Middle East, which has driven rates higher and crushed the momentum to the upside. At this point, I think we are going to be making a move towards the 23,000 level but really, I do think this is a market that despite the fact that it’s been very bearish and has held in there fairly well.

The question now is whether or not we get any good news to turn things around because that’s really all we’re moving on now. We’re not moving on anything else. It has nothing to do with earnings. It has nothing to do with PE ratios. It has nothing to do with the health of the economy, other than there are fears that the economy will crash because of the straight 4 move being bottlenecked.

Really, I think this is just a panic move. I do think we probably have a little further to go, but as things stand right now, if you had told me that we were going to see a war between the US and Iran and the market was going to drop a couple 100 points, I would have been somewhat surprised. So really, it’s just looking for good news as an excuse to rally.

DOW JONES 30 Technical Analysis

The Dow Jones 30, of course, looks very much the same. It is testing the 45,750 level, an area that I have marked on the chart as important, although not vitally. It is an area that we’ve seen some action in the past couple of months. We’ve seen a lot of people jumping in both directions. So, this will be an interesting one to watch.

It certainly looks very bearish. I think short-term rallies are to be faded unless, of course, we get again some type of good news coming out of the Middle East to juice the market back up.

S&P 500 Technical Analysis

The S&P 500 broke back above the 6,500 level only to fall again. This one looks like it’s probably going to continue the overall malaise. All of that being said, realistically, the drop that we’ve seen has been somewhat orderly, and that’s a bit surprising.

The market peaked at 7,000 and here we are at 6,450 or so, which is a common pullback. Again, this is a scenario where the index is acting quite well despite the fact that there are 1,000,000 reasons, at least you would think, that it should be falling apart.

Sometimes the analysis is about what a market won’t do, and it just won’t collapse. Yes, it’s negative, but this tells me that if we get some type of sentiment shift via a headline out of the Middle East, this thing will turn around immediately.