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

NASDAQ 100 Technical Analysis

The NASDAQ 100 rallied a bit in the early hours during the trading session on Tuesday, as we continue to press to the upside and to new all-time highs. This is a market that is very strong and pullbacks at this point in time continue to be buying opportunities, with the 22,250 level underneath being a bit of a floor. Ultimately, I have no interest in shorting this market. I think any pullback that you get at this point, you have to look at as a gift. If we were to break down below the 22,000 level, then maybe it’s a little bit deeper of a correction just waiting to happen. But ultimately, this is a market that looks extraordinarily bullish.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has bounced a bit in pre-market trading on Tuesday, getting back some of the losses from the troublesome Monday session. I think we’re possibly heading into a consolidation phase here as traders are perhaps just a bit stretched here and may have to work off some of this excess. If in fact, that ends up being the case, that’s typical and that’s completely normal. There’s no reason whatsoever to be concerned about it. Quite frankly, this is a market that looks extraordinarily bullish, and if it dropped to the 43,000 level, I don’t know much that would have changed.

S&P 500 Technical Analysis

The S&P 500 is bouncing a bit in the early hours of Tuesday as well. And much like the NASDAQ 100, it has broken out to a new all-time high. The 6,150 level appears to be significant support at the moment, as it was significant resistance in the past. So, I would anticipate that any retest of that area will get the attention of technical traders that are willing to step in and pick up cheap contracts. The 50-day EMA is all the way down near the $6,000 level, but it is rising. Eventually, that comes into the picture as well. So, we’ll have to wait and see whether or not things hold up. But right now, this is a market that looks like a buy-on-the-dip proposition to me, and I just don’t see how you could get short.

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