NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Continue to Grind Back and Forth in Premarket

NASDAQ 100 Technical Analysis

The NASDAQ 100 is very quiet in early trading on Wednesday, as we are simply bouncing around just below the crucial $25,000 level. The 25,000 level, of course, will have a certain amount of psychology attached to it, so it does make sense that we are just hanging around. If we can close above that level on a daily candlestick, then I think the Nasdaq 100 is ready to continue its next leg higher.

Short-term pullbacks, I believe, end up being buying opportunities in a market that quite frankly, is extraordinarily bullish to say the least. In fact, I think we could drop all the way down to the 24,000 level, and not much will have changed, because we will still be in the same channel.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks like it is slightly positive in the early hours here on Wednesday, but basically sideways over the last four days. I think this will continue, although I do expect a move to the upside before it’s all said and done. That move, in my estimation, probably has the Dow Jones 30 looking for the next large, round, psychologically important number in the form of 47,000. If we do break down from here, I would expect 46,000 to be support right along with the 50-day EMA sitting at the 45,600 level. So, in other words, the downside is somewhat limited.

S&P 500 Technical Analysis

The S&P 500 is slightly positive in the early hours on Wednesday as well, as we continue to hang around the 6700 level. If we can rally from here, it opens up the possibility of moving to the $6800 level, which I do think we eventually get to. Any pullback at this point in time would have to be thought of as a potential value play, as the market has been in such a reliable 45-degree angle channel for ages now, and we are just simply drifting higher. In fact, the bottom of that channel, closer to the 6,600 level, is backed up by the 50-day EMA, suggesting significant support.

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