NASDAQ Index, Dow Jones and S&P 500 Forecasts – US Indices Continue to React to Latest Headlines

NASDAQ 100 Technical Analysis

The Nasdaq 100 broke out to the upside very early during trading on Monday as traders were reacting to headlines coming out of the Trump administration that the United States and Iran had productive talks. Of course, an hour later, we have the Iranians claiming that there are no talks, so here we are. This is a market that I think continues to face serious headwinds, and while I don’t think it’s the end of the world for the Nasdaq 100, I think you need to see a little bit of stability to get long.

You also need to see yields in America drop and that doesn’t look like it’s going to happen anytime soon. I remain skeptical at best, although I haven’t gotten short yet.

Dow Jones 30 Technical Analysis

The Dow Jones 30 took off to the upside and broke above the 200-day EMA at one point, but as word got out that the Iranians don’t seem to know what the Trump administration is talking about, we have seen a bit of a sell-off. Whether or not it can hold as momentum to the upside remains to be seen. I’d like to see a daily close above the 200-day EMA, so on Monday, I probably won’t be doing much other than checking the chart at the end of the session. This just looks like a good market to get hurt trading.

S&P 500 Technical Analysis

The S&P 500 has bounced from the crucial 6,500 level, an area that it must hold, otherwise things get pretty ugly pretty quickly. We do believe that a break above the 200-day EMA is possible, but really, at this point in time, I think you need to see a little bit of follow-through.

So, the first steps have been laid out for a recovery, but again, you do not have to be the first person through the door in order to benefit from this. Let the market prove itself, I think we will have to see how this daily candlestick closes due to the fact that we have so many conflicting reports.