NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Continue to Recover After Greenland and Davos

Nasdaq 100 Technical Analysis

The Nasdaq 100 found itself bullish during the early part of the trading session here on Thursday, as we have bounced from the crucial 25,000 level. An area that is a large, round, psychologically significant figure, and now it looks like we have made a higher low again.

I think we are trying to get back to the 26,000 level. Now that the spat with the EU over Greenland seems to have been avoided, or at least tamped down, stock markets are willing to rise again, and I think we will eventually get our breakout.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has rallied pretty significantly during the early part of the session on Thursday as well, and it looks like we are trying to get back into a frame of mind where we can get to the 50,000 level. I do like the idea of buying dips in the Dow Jones 30 as it has held onto the 50-day EMA quite nicely, almost like a trendline.

50,000, of course, will be a large, round, psychologically significant figure that could cause some noise. But you can say that about multiple other levels underneath that we had broken in the past. I wouldn’t get too concerned about it.

S&P 500 Technical Analysis

The S&P 500 looks like it’s going to fill its gap from the Monday open, and now it looks like we are running towards the 7,000 level again. This is a market that I think will challenge 7,000 and eventually break above it. We are heading towards earnings season, so that obviously will have its play here as well. Geopolitics has stepped to the side, and now we can start to focus on the winners and losers.

Of note, and quite interesting, is the fact that some of the bigger AI names are a little softer than they were, and we’re starting to see other companies get bought up. That’s actually an extraordinarily healthy sign for the S&P 500 as we rotate into the bigger and broader index overall. I’m a buyer at dips.

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