NASDAQ Index, SP 500 and Dow Jones Forecasts – US Indices Continue to Wait for CPI

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially spiked during the trading session here on Tuesday, but it also looks like it’s not quite ready to take off. So, it’ll be interesting to see how this plays out. This is a market that, of course, has been bullish for some time, but we have CPI numbers coming out on Wednesday. So, Tuesday might be a little bit of a struggle to get any real traction. We’ll just have to wait and see. Nonetheless, if we do start moving pretty rapidly, I would suggest it’s probably more likely to the upside than downside, as we are in a nice uptrend.

But I also recognize that we are getting fairly close to the all-time highs. So, I suspect we’re probably going to have very noisy and somewhat sideways conditions in the next 24 hours. Once we get the CPI numbers, perhaps we take off to the upside. We’ll just have to wait and see. But if we do not, there is a lot of support in the 21,600 region and the 20,900 region below there.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has gone back and forth in the early hours on Tuesday as well, with the look of a market that is trying to figure out what it wants to do next as we are pressuring a significant resistance barrier in the form of 43,000. If we can take out 43,000 and continue to go higher, then we could go looking at 43,500. We’ll just have to wait and see how that plays out. But right now, it looks like a buy on the dip market, with 42,000 below being a significant short-term support level, not only due to the fact that it is a large round number, but it also features the 50 day EMA and the 200 day EMA indicators.

S&P 500 Technical Analysis

The S&P 500 continues to chop back and forth as we try to find some type of momentum. We are hanging out just above the crucial 6,000 level. So, the fact that we are above it is a good sign. But again, I think we’re waiting for the CPI figures to come in now to put any real money to work. We’ll just have to wait and see. We do have a lot of supply between here and 6,120, so we’ll pay attention to that as well.

But I believe that the S&P 500, right along with the other indices in the United States, will continue to be more or less a buy on the dip type of situation. I have no interest in shorting stocks after the recent run up. After all, we had fallen apart and bounced to the top, almost as quickly as we fell apart, which is actually fairly uncommon, this tells me that the market at least wants to go higher.

For a look at all of today’s economic events, check out our economic calendar.