NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Continue to Be Noisy

NASDAQ 100 Technical Analysis

The Nasdaq 100 has pulled back just a touch during the early hours on Monday, as it looks like maybe some of the excitement from Jerome Powell suggesting that rates might be able to be cut in September is starting to wear off. We’ll just have to wait to see because this is pre-New York trading. That being said, I do find it interesting because historically speaking, when the Federal Reserve starts cutting rates, there might be a little bit of euphoria for a while, but typically the market sells off because they start to worry about why the Fed is cutting rates.

If we do break down from here, there is a trend line and the 50-day EMA, which currently is at the 22,900 level, so I do think there is a floor. But if we rally from here, then the 24,000 level, I think, ends up being really difficult to break above, and we’re going to need some type of momentum.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has pulled back, although admittedly, the Dow Jones 30 looked much stronger than the Nasdaq has over the last two days of trading. Ultimately, this is a market that has broken to a fresh new high, so I have to see how it plays out. The 45,000-level had previously been a brick wall that was almost impossible to break above, so now, technical analysis speaking, of course, suggests that there should be support on this pullback offering the opportunity to find a bit of value.

S&P 500 Technical Analysis

In the S&P 500 we did pull back basically from the 6500 level, as again, it looks like maybe some of that exuberance on Friday needs to be rethought. I’m not saying that the markets are going to fall, and I’m not even suggesting that the S&P 500 is going to drift much further than it has, but you do have to recognize this is not a one-way trade. If we break above the 6500 level, then that opens up the S&P 500 to go much higher. But as things stand right now, I suspect a short-term pullback is probably what we’re getting ready to see, and if we do, there should be plenty of buyers below, especially near the 6,350 level, assuming it even gets that bad.

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