NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Continue to Show Uptrend Despite Pullback

NASDAQ 100 Technical Analysis

The NASDAQ 100 has pulled back just a bit during the early hours here on Monday, as we are at the top of a major trending channel. This channel, of course, will be paid close attention to because it has been so reliable for several months. And of course, maybe the markets got a little bit ahead of themselves. It’ll be interesting to see how this plays out. I certainly think that there will be plenty of buyers on dips, and I think finding a little bit of value in the NASDAQ is probably exactly what people will be trying to do. For me, the 24,000 level should be rather supported. And then after that, you have the 50 day EMA, which is a major uptrend line.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has shown itself to be negative early in the trading session here on Monday. I think ultimately this uptrend line will continue to be very important. And with that being the case, even if we were to break below this uptrend line, then we could drop to the 45,000 level. The 45,000 level is an area that had previously been resistance, and it should now be support. I think market memory is a major thing here. And I do recognize that the Dow Jones 30 should continue its overall uptrend, although we might get a short-term pullback. Regardless, I still don’t have any interest in shorting this market.

S&P 500 Technical Analysis

The S&P 500 is just a touch negative here in the early hours on Monday, but again, we’re just on this channel. We had several green days in a row. A little bit of a pullback is probably not the worst thing. And quite frankly, I think there’s plenty of buyers underneath that will be willing to get involved. The 6,500 level should continue to be a bit of a floor in the market. Backed up by the massive 50-day EMA coming into the picture as well. So, with that being said, I like the idea of buying dips and taking advantage of cheap contracts if and when they show up.

The Federal Reserve is likely to cut rates a couple of times going forward and that will help stocks eventually. And right now, we’re still kind of in that wait and see mode, I think. A lot of people don’t really know what to do with their accounts. But one look at the longer term chart tells you the direction. The direction’s up. Now it’s just a matter of seeing a bit of a pullback and a bounce that shows value hunters coming back into the market that you can take advantage of.

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