NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Attempt to Recover in Early Trading

NASDAQ 100 Technical Analysis

The Nasdaq 100 has rallied a bit during the early hours on Wednesday as we are now testing the previous uptrend line. If we can break above there and get above the 50-day EMA, then we start wrestling with the idea of the 25,000 level. Breaking above the 25,000 level opens up the possibility of a move to the 26,000 level. If we break down below the lows on Tuesday, it’s possible that we could go down to the 24,000 level.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has rallied slightly during the early hours on Wednesday and will test the bottom of the up-trending channel and perhaps the 50-day EMA if we can get a slight bounce. If we can take out the 50-day EMA to break above there, then the 47,000 level gets targeted, an area that was pretty important in the past. The question now is whether or not the weird panic is over. It is worth noting that Nvidia reports, so that will make a big difference in the Nasdaq 100 and the S&P 500. It’s possible that it could drag the Dow Jones 30 right up with it.

S&P 500 Technical Analysis

The S&P 500 is in the same situation as the other two indices. We have broken through a trendline, but at this point, it’s still very much an uptrend. I don’t see you fighting this, and if we can break above the 50-day EMA, it’s likely that we could go looking at the 6,800 level. Anything above there then probably gets back towards the idea of the 7,000 handle. Keep in mind that 6,500, which is just slightly below, should also be significant support. Also, keep in the back of your mind that the Santa Claus rally is likely to occur in the next few weeks, like it does most years, and if that’s the case, that might provide a little bit of a bid for the marketplace anyway.

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