NASDAQ Index, SP 500 and Dow Jones Forecasts – US Indices Drop in Thin Holiday Extended Trading

NASDAQ 100 Technical Analysis

The Nasdaq 100 has pulled back a bit in what would have been very thin electronic trading on Friday, as it was Independence Day in the United States. That being said, the market probably needs to pull back regardless, just simply due to the fact that we broke out and now we need to pull back in order to continue the overall uptrend.

The 22,250 level is an area I will be watching very closely. As it previously had been a barrier, it should now be support. At this point, if we can continue to the upside, the 23,000 level would be my target, and I don’t see anything on this chart that tells me we won’t get there. The NASDAQ 100 has led the way for most indices in the United States and should continue to.

Dow Jones 30 Technical Analysis

The Dow Jones 30, of course, pulled back as well, turning away from the crucial 45,000 level, an area that I think will probably continue to cause a bit of resistance. But if and when we can break above there, it should launch to the upside. The pullback makes perfect sense here. You can see that we have had a straight shot up in the air over the last seven or eight trading sessions. So that’s exactly what I would expect. That pullback should end up being a nice buying opportunity though.

S&P 500 Technical Analysis

The S&P 500 pulled back pretty significantly during the trading session here on Thursday. And again, this would have been very thin electronic trading in the futures market, but it looks also like a market that had probably seen a lot of people taking profit. The market has a significant floor, or at least it should, at the 6,150 level, an area that had been in resistance previously. And therefore, I think any pullback at this point in time that gets anywhere near there, you have to be interested in. I have no interest in shorting this market, and I really don’t see anything that will keep it from breaking above 6,300 and eventually going much higher.

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