NASDAQ Index, Dow Jones and S&P 500 Forecasts – US Indices Continue to See Overhang of Resistance

NASDAQ 100 Technical Analysis

The NASDAQ 100 initially tried to rally a bit during the trading session on Wednesday, breaking above the 25,000 level. The 25,000 level is an area that I think a lot of people will be watching due to not only the psychology of the number but the 50-day EMA.

If we were to break above the 25,200 level, then I think it opens up the possibility of a move towards the 25,500 level and possibly beyond. This is a market that has been very choppy as of late and with all of the risk appetite out there being all over the place, I would anticipate more of the same that we have seen over the last 2 or 3 weeks.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks like it is rolling over. It is struggling with the idea of the 48,000 level, and underneath we have the 47,000-level offering support with the 200-day EMA.

Breaking above the high from the Tuesday session could kick off quite a bit of buying, and quite frankly I think that is what I would have to see to get involved. That being said, it is worth noting that we have seen this happen a couple of times where these indices sell off in Asia and Europe only to see the Americans buy it back.

S&P 500 Technical Analysis

The S&P 500 rallied slightly during the early part of the session only to roll over and show signs of negativity. The market is looking at the 6,800 level as a place with a lot of market memory, as it was previous support; now it ends up being resistant.

If we can break above the highs of the Tuesday session here, then I think that means we challenge the 50-day EMA and possibly go looking to the 7,000 level. Anything above the 7,000 level kicks off a longer-term uptrend. I do not see that happening quite yet.

I think we are in the midst of rolling over due to war concerns, and of course, there are some problems in the private credit market now, which are starting to have people in the stock market a little bit concerned. Yields rising in the morning have also put a little bit of pressure here.