NASDAQ Index, S&P 500 and Dow Jones Forecast – US Indices Plunge but Find Buyers Heading into US Session

NAS100 Technical Analysis

The NASDAQ 100 plunged initially during the trading session on Monday in overseas electronic trading, but it is worth noting that we have turned around to show signs of life, and we broke down below the 200-day EMA.

The 200-day EMA is offering a massive support level, so it’ll be interesting to see if we can turn around and break to the upside. The 75,000 above is where paying close attention to as the 50-day EMA that sits just above there.

I think we probably see a little bit of a recovery and really at this point, despite the fact that it looks so ugly during the early part of the session, we’re still very much in overall consolidation.

US30 Technical Analysis

The Dow Jones 30 has been hit rather hard, but it is turning around to show signs of life right here at the 200-day EMA, so that’s worth paying attention to.

If we can break higher from here, the 48,000 level might be targeted. We’ll just have to wait and see, but this is a market that I think will try to fill the gap based on what we are seeing, at least as we head towards the Wall Street open.

SP500 Technical Analysis

The S&P 500 also gapped lower but bounced off the 200-day EMA to show signs of life. We’ll have to see if we fill this gap and go looking at the 6,800 level.

One thing that is clear to me is that this market doesn’t want to break down long term. That doesn’t mean it can’t, it just means that it doesn’t want to. So, there is plenty of resilience here.

I do expect a bit of a recovery. I don’t necessarily think it goes straight up in the air, but the resiliency is something that has to be watched very closely. It’s very interesting to watch to say the least.