NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Fall in Electronic Overnight Trading

Nasdaq 100 Technical Analysis

The Nasdaq 100 is down pretty significantly during early trading on Monday, losing about 1.4% as I record this, but it should be kept in the back of your mind that it’s Martin Luther King Jr. Day in the United States, so the actual index itself is closed. This is an action coming out of the futures market and the CFD market.

The announcement of the European Union cutting up the trade agreement with the United States due to the spat with Greenland now does, of course, have traders worried, but I’ll draw attention to the fact that when you look at the daily candlestick, it really doesn’t look too much worse than many others. So, the first thing I think is, can I start buying? I’m watching the 25,000 level very closely for a bounce that I can start buying into when momentum returns to the upside.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is down at the 49,000 region as it gapped lower. But again, this is a situation where I think it’s probably only a matter of time before we recover, and the headlines over the weekend, of course, give us some type of reason to get long.

If the market were to fall from here, the 50-day EMA could come into the picture as support, but I think that’s probably pretty far away. I wouldn’t be surprised at all to see this thing turn around and, in fact, am looking to take advantage of that if and when it happens.

S&P 500 Technical Analysis

The S&P 500 gapped lower as well, but it sees itself somewhat supported by the 50-day EMA just below current pricing. Underneath there, you have the 6800 level that I think will be important as well, as we are still very much in an uptrend.

The 7000 level above is a large, round, psychologically significant figure that a lot of people will be watching, and I do think eventually we break above there. Obviously, it has been a bit of a barrier, and with the noise coming out of the geopolitical trade situation, maybe this is just going to end up being a buying opportunity. That certainly is how I’m looking at it, but we will have to see how Wall Street reacts on Tuesday because it is Martin Luther King Jr. Day on Monday. That being said, I still remain bullish.

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