Nasdaq 100 Technical Analysis
The Nasdaq 100 found itself rallying in pre-market trading on Monday as we are bouncing from the 200-day EMA. The market is likely to see the 25,000 level above as a potential barrier, so we’ll have to see how that plays out. Right now, it looks like we’re at least trying to recover in what’s been a very noisy couple of weeks, as the headlines from the war and of course, oil prices continue to be major influences on how the risk appetite proceeds, and therefore, you have to remember that the action will go beyond earnings, etc.
Dow Jones 30 Technical Analysis
The Dow Jones 30 looks like it’s going to try to recover. We’ll see whether or not it can break above 47,000. It is hanging around the 200-day EMA and fighting as much as it can. I do think a short-term rally makes sense. We are oversold, but whether or not that changes the trend that we’ve seen recently back into an uptrend, I don’t know. I think it’s way too early to assume that, but it does look like we are at least trying to bounce a bit and find some stability.
S&P 500 Technical Analysis
The S&P 500 has rallied a bit during early trading on Monday as well, bouncing from the crucial 200-day EMA. We’ll see how this plays out, but I think 6,800 is a reasonable target. 6,800 is the previous support and should, at least in theory, be resistant again. In fact, it’s already proved itself to be so. The 50-day EMA is racing towards that number, so it all lines up quite nicely. I think a short-term bounce in the US indices overall is probably the most likely outcome.
