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

NASDAQ 100 Technical Analysis

The Nasdaq 100 rallied slightly during the trading session here on Tuesday as we are looking to take out the all-time highs. That being said, it’s worth noting that the CPI numbers came out pretty much as anticipated. So, with that being the case, I think you’ve got a scenario where traders are starting to celebrate the idea of potentially loose monetary policy. I don’t know if that’s actually the case, but it’s what the market believes. And it looks like the NASDAQ 100 will do everything it can to break out.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is rallying, but it is still very much in its consolidation as well. So, with that being the case, I think you look at this through the prism of a buy on the dip market because it is positive for longer term. The 50 day EMA currently sits at the 43,741 level and is rising to offer support for this tight range that we have been in for the last six sessions as well. Underneath there we have support at 43,500.

S&P 500 Technical Analysis

The S&P 500, much like the NASDAQ 100, is doing everything it can to break out to the upside. If and when it does, I think you’ve got a real shot at the S&P 500 breaking towards the 6,500 level, which is the next large, round, psychologically significant figure. I see a significant amount of support at the $6,300 level below, as well as the 50-day EMA at 6,200. Ultimately, I have no interest in shorting this market. This is a market that’s been very bullish for a while. And with that being the case, I think a lot of traders will look at this through the prism of trying to find value.

The 50 day EMA has acted a bit like a trend line for a while. And with that being the case, I think you have to keep in the back of your mind that this is a situation where traders look to find value anytime, they can and then take advantage of it. If we do just simply break out to the upside, the 6500 level probably causes some headaches but it’s just a psychological level more than anything else.

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