NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Continue to Look Choppy but Positive

NASDAQ 100 Technical Analysis

The NASDAQ 100 has initially tried to rally a bit during the trading session here on Friday, but it does look like we are seeing a little bit of an overhang at this point. Like maybe the market is probably heading into a consolidation area instead of just shooting straight up in the air, like everybody seems to believe it will do on each dip. This has been a very noisy couple of days in the NASDAQ and quite frankly, the volatility is getting very dangerous.

So more likely than not, if you remain bullish of the NASDAQ, and quite frankly, there’s nothing on the chart that looks negative, you probably are going to be looking for short-term pullbacks, such as the one we saw during the day on Thursday when the market really sold off. And then late in the day, people jumped in and started buying.

Dow Jones 30 Technical Analysis

The Dow Jones 30 did try to rally a bit in the beginning part of Friday, but you can see it’s a little feckless at the moment, as we are just hanging out just above the 50 day EMA. All things being equal, this is a market that I think is in the midst of a trading range between the 43,500 level on the bottom and the 45,000 level on the top. I still favor the upside, but I think we’ve got some chop ahead of us. And considering that it’s the month of August, that should not be a surprise.

S&P 500 Technical Analysis

Finally, in S&P 500, we have that same action of trying to rally, just not quite having enough momentum. The candlestick from the Thursday session is going to be worth watching because that really tells us that there’s a lot of trouble at the moment in getting overly bullish, but it’s also worth noting that late in the day we started to see the market really take off. So, all things being equal, I think we’ve got a situation where traders are trying to determine whether or not we have enough momentum to kick off the next leg higher.

It does not appear that we have it yet. So, I think you probably have sideways action over the next couple of days. But that being said, I certainly wouldn’t short this market. The 50 day EMA at the 6,188 level is rising and offering support with the 6,150 level underneath there offering even more support. The 6,500 level above I think is eventually the target, but we may have some work to do.

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