NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Attempting to Bounce

NASDAQ 100 Technical Analysis

The NASDAQ 100 initially fell a bit during the trading session here on Wednesday, but really at this point in time it looks very like a market that is trying to figure out whether or not it can find enough momentum to continue going higher. I suspect that if we can break the top of the shooting star from the Tuesday session, that will blow out a lot of stops and could send this market much higher. The 22,700 level underneath is your first support level. And the major one is 22,250. So, I do look at this as a market that you need to be a buyer of short-term pullbacks.

Dow Jones 30 Technical Analysis

The Dow Jones 30 initially fell as well, but it is starting to recover a bit. And you could even say it’s perhaps outperforming the NASDAQ 100, at least so far. With that being the case, I think the market is going to be one that might lead the way during the day. We are building a bit of a bullish flag, so we’ll have to see how that plays out and whether or not that bullish flag can eventually break out to the upside, as that could be a technical indicator that we are about to break the crucial 45,000 level.

S&P 500 Technical Analysis

In the S&P 500, we initially pulled back during the trading session here on Wednesday, but you can see the market has turned around since then to show signs of life. With that being the case, I think you’ve got a situation where traders will be watching to see if we continue this overall consolidation or if we need to pull back, perhaps back to the $6,150 level.

I do think this is a market that eventually will try to take out the $6,300 level to the upside, which of course would be a very bullish turn of events. In that environment, it becomes more buy and hold. And I think you would see 6,400 targeted pretty quickly and then eventually 6,500.

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