NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Continue to Look for Higher Levels

NASDAQ 100 Technical Analysis

The NASDAQ 100 has rallied a bit during the early hours here on Wednesday, but I’d be careful because Thursday is Thanksgiving in the United States, so it will be closed. The futures markets and CFD markets will have some motion on Thursday in after-hours markets, but you can’t read too much into that. We are trying to break back above the previous uptrend line that had offered resistance.

So, at this point in time, I’ll be watching 25,350 for signs that we did, in fact, recover. If we pull back here, then we’ve got the 50-day EMA right in this neighborhood offering a bit of support. I don’t want to short this market, but I do recognize it might be difficult to throw a lot of money into the index on Wednesday.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has rallied again, and it is above the 47,000 level. This index looks a little healthier to me than the NASDAQ 100, but at the end of the day, they will all move in the same direction over the longer term. 48,000 is more likely than not your next target. Short-term pullbacks end up being buying opportunities in the Dow Jones 30 with the 50-day EMA backing up that uptrend line at the bottom of the channel that we have just re-entered in the last 24 hours, which, of course, is a good sign.

S&P 500 Technical Analysis

The S&P 500 finds itself right at the 6,800 level, which is a big deal for me. If we can break higher from here, perhaps 6,900, then the S&P 500 is ready to get going. The question at this point in time is, do we have to pull back and find more buyers to do that, or do we just drift higher? Remember, again, Thursday is Thanksgiving, but what we might be seeing is the beginning of the so-called Santa Claus rally. We’ll just have to wait and see.

But clearly, this is a market that’s not going to be comfortable to get short of. So, really, at this point in time, I’m a buyer of dips. The 50-day EMA could offer nice support if we do pull back. That’s basically the lows of Tuesday. We’ll just have to wait and see. I do think that if we break higher from here, there’s more of a grind, but you never know. Either way, it’s a one-way market.

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