NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Bounce Back After Selling Pressure

NASDAQ 100 Technical Analysis

The Nasdaq 100 has dropped initially during the early hours here on Wednesday only to turn around and show signs of life. That being said, the market is still very much in a very bullish trend, and I don’t see anything here that tells me I should be short of this market. You do have to keep in mind that Friday is non-farm payroll announcement, so that will have a major influence. But at this point, it does look like when we dip, there are value hunters willing to get involved, just like we’ve seen earlier in the session. I have no interest in shorting at this point.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has dropped to test a significant uptrend line only to turn around and show signs of life. All things being equal, this is a market that I think remains “buy on the dip” as well. But if we were to break down below the uptrend line, then we could go looking at the 45,700 level. Underneath there, then you have the 45,000 level, which I think is the actual floor in the market. All things being equal, this is a market that I think will eventually find its way towards the 47,000 level.

S&P 500 Technical Analysis

The S&P 500 initially pulled back just a bit, only to turn around and show signs of life, just like the NASDAQ 100. So having said that, I think ultimately this is a market where we will continue to see a lot of choppiness and back and forth. Short-term pullbacks show probably 6,600 as a support level. We have an uptrend line underneath there and the 50 day EMA hanging around in the same area. Ultimately, we are in a scenario where we continue to see plenty of buyers on short-term drops. And I do think, given enough time, we will go look at the 6,800 level.

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