NASDAQ Index, S&P 500 and Dow Jones Forecast – US Indices Continue to Grind

Nasdaq 100 Technical Analysis

The Nasdaq 100 initially rallied a bit during the trading session on Tuesday but just rolled over in early electronic trading. Whether or not the Americans play along with this game, we don’t know, but it certainly looks as if a market that just ran out of reasons to do anything. We’re in consolidation with the 200-day EMA and the 23,800-level offering support.

At this point, if we turn around and rally, the 25,000 level is a barrier that I think traders will have to pay close attention to, as the artificial intelligence scenario of driving stocks much higher seems to be wearing off, and now people just don’t know what to do with tech stocks.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues to be somewhat noisy and choppy, although it looks like it’s doing better than the Nasdaq 100. It still has a little bit of a lost feeling to it. We had this nice rally last week only to see the market just sit here.

With that being said, I think it remains a buy on the dip scenario, but obviously the 50,000 level is causing chaos for those on Wall Street who just simply don’t have conviction at the moment. While I am positive of the Dow Jones 30, you’re going to have to pack a lunch because this is going to take a lifetime.

S&P 500 Technical Analysis

The S&P 500 finds itself at the 6,800 level yet again in a scenario where we’ve been trading in a 200-point range since late last year and we just can’t escape from it. If we do break down, then we could be looking at a move towards the 200-day EMA. If we bounce from here, we will probably go test 7,000 yet again. A lot of patience will be needed if you’re trading US stock indices at the moment.