NASDAQ Index, S&P 500 and Dow Jones Forecasts – Indices Look to Recover in America on Monday

NASDAQ 100 Technical Analysis

The Nasdaq 100 looks like it is a slightly positive market in early pre-market trading as we kick off the week right at the 50-day EMA. The 50-day EMA has acted for the most part, perhaps for the last eight months or so, as a bit of a trend line. The 25,000 level sitting just below is also supported. So I think you need to pay close attention to that as well. And with that being said, if we can take off from here, the market breaking above the highs of the Friday session would be a very bullish sign. Regardless, I have no interest in shorting, and I think these pullbacks offer buying opportunities.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks like it’s trying to reach the all-time highs again early during the trading session on Monday, and I think it’s probably your best performer out of the three major indices. The 20-day EMA and the 50-day EMA are both starting to rise, and I think you’ve got a situation here where the 200-day EMA, being all the way down at the 45,000 level, shows just how bullish this market is. 47,000 remains the floor in the market.

S&P 500 Technical Analysis

The S&P 500 rallied a bit during the early hours on Monday as well, using 6,800 as a major floor. The 6,800 level has been important multiple times, and I think it needs to be paid close attention to because as long as it holds, we’re basically just consolidating and not much is going on. This is a market that tends to rally at the end of the year. And I think a lot of traders are out there pushing for that so-called Santa Claus rally. A break above the highs from just a few sessions ago opens up the door to 7,000.

For a look at all of today’s economic events, check out our economic calendar.