NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices a Little Overdone

NASDAQ 100 Technical Analysis

The Nasdaq 100 rallied a little bit in the early hours of Monday, but really at this point in time, I think you’ve got a situation where we are very bullish, but we’re also a little overdone. So, I do think you will get the occasional pullback that could cause headaches for a lot of traders. Ultimately though, this is a market that I just don’t see how you would be a seller of, as traders have made it clear that they are bullish on stocks overall. The 22,250 level is a major support level as it had been previous resistance. Either way, I look at dips as buying opportunities. I have no interest whatsoever in shorting.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has rallied a little bit during the early hours here on Monday as it looks like we are going to do everything we can to get to the 45,000 level. If we can break above 45,000, then I think there’s a real shot that the market really starts to take off. That being said, we are a little overdone at this point and a little bit of a pullback would not necessarily be the craziest of ideas. So, I am looking at this through the prism of a market that perhaps may have gotten a little overdone, but I do think that given enough time, we do get that breakout. Pullbacks offer value. 43,250 is an area that I think will attract a lot of attention.

S&P 500 Technical Analysis

The S&P 500 is down a little bit in pre-market trading, only followed by a little bit of a bounce. So, I think this is more choppiness, more sideways action. All things being equal, I think we look for pullbacks to take advantage of and then open up the possibility of even if we do drop from here, perhaps the 6,150 level opens up massive support as it was resistance previously. So that market memory comes into the picture. 6300 is almost certainly a target at this point. Eventually though, I think we get as high as 6400. Again, buying on the dips, no interest in shorting.

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