NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Continues to Bounce Around

NASDAQ 100 Technical Analysis

The Nasdaq 100 has drifted a little bit lower during the trading session here on Tuesday before New York opens. And it does suggest that perhaps we’re going to be a little bit noisy, but the uptrend line, I think, continues to be something that you need to pay close attention to. The 50-day EMA sits just below there and is rising. So, between all of that and the $23,250 level, I think you’ve got a real shot at market participants finding a little bit of support and rallying.

Keep in mind though, Nvidia is 14 % of the NASDAQ and it reports earnings after the bell on Wednesday. So that of course means that you’re looking at a chart of what people think Nvidia is going to do with a couple of other stocks. So, I think the next day could be very noisy, but once we get our Nvidia earnings, that will pick the next direction.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is slightly negative, but it did bounce a bit from the potential support area just above the 45,000 level in pre-market trading. So that’s a good sign. The question is, do we have the momentum to carry forward the volume from the Friday candlestick after it was suggested that maybe the Federal Reserve is ready to start thinking about cutting rates? If that’s the case and we can make a fresh new high, then I think Dow Jones 30 goes towards 46,000.

S&P 500 Technical Analysis

The S&P 500 has also pulled back just a bit, but like the other two indices, has found a little bit of buying in pre-market trading to at least mitigate some of the losses. The 6,500 level continues to be a massive barrier that I think a lot of traders are going to be trying to break above. If and when they can, then I think you have the potential to move to the 6,700 level.

After that, the sky’s the limit, we just don’t know. But in the short term, I do think you’re going to get the occasional pullback. And I do think that there’s plenty of support at multiple levels below. The first one, in my opinion, is fairly significant, is 6,350, followed by the 50 day EMA and then where I think there’s a hard floor at 6,200. So, either way, I think it’s a buy on the dip market.

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