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

NASDAQ 100 Technical Analysis

The NASDAQ 100 has shown itself to be fairly choppy during the early hours here on Tuesday, initially dropping and then turning around, and then after that jumping with a CPI number that was a little disappointing, therefore suggesting that the Federal Reserve is going to cut rates.

I think ultimately none of that mattered. I think this is a market that is going higher for a whole host of reasons, and therefore, I’m looking at short-term pullbacks as buying opportunities. Keep an eye on that 26,000 level. That to me is crucial. If we break there, we probably go quite a bit higher.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks very much the same in the sense that it doesn’t really have anywhere to be, but I am watching the 49,000 level underneath. It is a large, round, psychologically significant figure that I think a lot of people will be watching, as it was previously resistant.

The 50-day EMA is now crossing above the 48,000 level. I think for the medium-term trend, that is your line in the sand, as it were. I think we are probably going to see 50,000 fairly soon. It’s just that we need some type of catalyst.

S&P 500 Technical Analysis

The S&P 500 has been noisy early during the trading session, but as you can see, the market still has an upward tilt to it. I think it’s probably only a matter of time before we reach 7,000 and probably break above there. Once we do, I would anticipate more algorithmic trading jumping on the bandwagon.

I look at pullbacks as buying opportunities with the 50-day EMA offering a bit of support. The 6,800 level underneath there I think, is your floor in the market for the time being. I am bullish on the S&P 500, and I think most other people are as well.

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