NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Continue to Look Bullish in Premarket Monday Trading

NASDAQ 100 Technical Analysis

The Nasdaq 100 rose a bit during the early hours here on Monday after testing the 50-day EMA and the uptrend line that is the bottom of the overall channel we have been in for most of the last several months. The 25,000 level is a significant area of both support and resistance and, of course, has a lot of psychology attached to it. So, the fact that we’re bouncing here isn’t a huge surprise.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has bounced a little bit as well, as it looks like 47,000 continues to at least offer some support despite the fact that we did plunge far below there during the day. The 50-day EMA offers support as well. But at this point, I think we’re going to head right back up toward the 48,000 level—unless, of course, something upsets the markets, which is always possible. But right now, things look pretty good, pretty solid. So overall, I think this remains a buy-on-the-dip type of situation, and I just don’t see that changing very quickly.

S&P 500 Technical Analysis

The S&P 500 is crossing the 6,800 level, and it looks like it is, in fact, going to continue to go higher, but there is a little bit of resistance just above that level. So, we will have to deal with that. I suspect this is going to be a situation where you’re buying pullbacks as well. It is worth noting that on Friday, much like the Nasdaq 100, we saw the S&P 500 drop to the 50-day EMA, only to turn around and show signs of life not only at the 50-day EMA but also at the uptrend line. Over the longer term, I anticipate that the market will probably go looking to the 6,900 level and then eventually 7,000. As we head toward that Santa Claus rally, we’re not there yet—but it’s coming quicker than you think.

For a look at all of today’s economic events, check out our economic calendar.