NASDAQ Index, S&P 500 and Dow Jones Forecast – US Indices Struggle Early on Tuesday

NAS100 Technical Analysis

The NASDAQ 100 has plunged during early trading on Tuesday as the conflict in the Middle East seems to be getting worse, not better. With that, and of course, private credit starting to struggle, we are more likely than not going to continue to see the market struggle with hanging onto large gains.

I don’t think this is necessarily the beginning of something massive, but of course, a headline here and there could make a huge difference. If we turn around and rally from here, the 25,000 level could be a barrier yet again, as we had seen in the previous session.

What will be interesting is to see how the Americans react because we had this exact same noise early on Monday, only to see New York turn things around.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is breaking down to test the 48,000 level. We’ll have to wait and see whether or not it can stabilize here and bounce, perhaps trying to get back to the 49,000 level.

All things being equal, we are testing a major trendline area and this would be an area where you would see it bounce if we are in fact going to see a repeat of the next 24 hours of the previous 24 hours.

S&P 500 Technical Analysis

The S&P 500 is also testing the 6800 region. This is a market that has been doing nothing for months and we’re at the bottom of the range. So, it’ll be interesting to see if we can turn around.

If we can, then we probably head back towards the 50-day EMA. Ultimately, this is a market that I think, given enough time, will go higher, but there’s a lot of noise right now, and I think a lot of people are just quite frankly afraid to put any money to work, so expect more of the same.