NASDAQ 100 Technical Analysis
The Nasdaq 100 has been very quiet during trading on Tuesday, and that should not be a huge surprise considering that Wednesday features the FOMC interest rate decision. And although the Federal Reserve is expected to cut, the real question will be what the tone of the cut will be, especially during the press conference. As things stand right now, the market looks a little tired after a huge V pattern, but we have not been able to hang on to gains.
We haven’t exactly sold off either. So, I think that just leads to the idea that we are hanging around and waiting to see what Jerome Powell will have to say. Dips at this point are probably buying opportunities, given the larger-term trend. But you notice that we shot straight up in the air in April, went in a nice 45-degree channel after that, and over the last month or so have been consolidating. I think this is healthy. I don’t see anything.
Dow Jones 30 Technical Analysis
The Dow Jones 30 has found itself to be a little bit sideways as well, as you would expect. It looks like the 48,000 level is going to continue to be a major barrier. We broke above there a little bit in the early part of November, but got repudiated. At this point, the question is going to be whether or not we go sideways in a big range between now and the end of the year, or do we take off to the upside. I think this solely rests on the shoulders of Jerome Powell.
S&P 500 Technical Analysis
The S&P 500 is choppy and sideways as well, but if we can break above the 6,930 level, I think at that point in time, we will probably try to target 7,000. The 6,800 level continues to be short-term support, and we have the 50-day EMA near the 6,750 level and rising, offering a little bit of a pseudo trend line. Again, I think this is a market that’s just patiently waiting to see what the Federal Reserve will have to say.
We are getting close to the end of the year, so sooner or later, volatility probably picks up and then drops suddenly as volume disappears, especially closer to the holidays. We are a couple of weeks from that. So, markets always get a little bit odd this time of year anyway, but overall, the trend is positive. I don’t expect that to change anytime soon.
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