NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Agree With FOMC

NASDAQ 100 Technical Analysis

The Nasdaq 100 has rallied quite nicely during the early hours on Thursday, as it looks like traders are starting to give the thumbs up to the idea of the 25 basis point interest rate cut coming out of the Federal Reserve. As the market rallies, we will start to approach the top of the channel that we have been in. So, we’ll see whether or not that causes any issues.

But the technical analysis for some time has suggested that perhaps we go looking to the 25,000 level. I don’t really see any situation in the chart, at least that suggests that we can’t get there. Short-term pullbacks more likely than not will continue to be buying opportunities.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is now at a new all-time high. It’s testing the top of what could have been a rising wedge. We’ll just have to wait and see. And I do think that Dow Jones 30 continues to attract attention anyway. After all, if we are going to see looser monetary policy, the idea of course is that industry will take advantage of that. Short term pullbacks, I think continue to be buying opportunities here as well. And at this point in time, I look at the 45,000 level as more likely than not, a bit of a floor in the market.

S&P 500 Technical Analysis

The S&P 500 rallies as well as the pre-market trading has been very positive. Ultimately, this is a market where I think if it does get a little bit of a pullback, people will be more willing than not to jump in and pick up cheap contracts. The 6,500 level underneath should continue to be support. And really at this point in time, there’s nothing on the chart that tells me that this is a market that could be in trouble anytime soon. If we were to break down below the 6,500 level, we also have the uptrend line and the 50-day EMA both coming into the picture to perhaps offer support as well. I believe that this market still has further to go to the upside.

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