NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Adjusting to AI Selloff

NASDAQ 100 Technical Analysis

The Nasdaq 100 is sitting right at major support in the 25,000 region as we’ve seen the AI premium, as it were, taken out of the market with AMD dropping 17% at one point on a soft outlook. It’s really contaminated the entire sector, so the Nasdaq 100 is still struggling. We’re starting to see others like Broadcom, Micron, and Nvidia all a little soft, so that’s how we ended up here. I think we are in an area where we could see a bit of a bounce, though, so look for signs of momentum picking up.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues to hover near the highs, as we have seen a lot of noisy behavior overall. I think this makes quite a bit of sense because traders are starting to rotate into safer, larger, more stable stocks, and that’s exactly what this index represents.

The 50-day EMA continues to offer support, and I do think eventually we will find our way up to 50,000. We’re just trying to find a reason to get there right now. As things stand, I think you are looking at this through the prism of buying dips and hopefully getting a good price for a market that I do think, once it breaks 50,000, will continue much higher.

S&P 500 Technical Analysis

The S&P 500 looks like it’s basically caught in the middle of an overall range as we’re sitting right at the 50-day EMA. It’s more or less a market that is perhaps trying to figure out which direction it wants to run.

I do think longer term this looks a lot like a market that will continue its overall uptrend, and I think with this, you are looking at a buying of the opportunity of cheaper contracts. Perhaps trying to build up momentum to finally break above the 7,000 level, but you’re going to have to be very patient.