NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Fall in Premarket Hours

NASDAQ 100 Technical Analysis

The Nasdaq 100 has fallen a little over 1 % in pre-market trading throughout the Asian and European sessions before New York comes on board. We find ourselves testing an uptrend line and seeing the 50-day EMA just below, which solidifies that this should be an area of support. While I don’t advocate shorting the market by any stretch of imagination, the reality is I think we’re running out of momentum. A correction is probably in the cards and, quite frankly, would be a healthy thing. Support levels include right where we are now at the 23,250 level, the 50 day EMA and the 22,250 level. Ultimately, I think a pullback is going to end up being necessary.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has pulled back just a bit, but does see support below at the 45,000 level. Again, I think this is the situation where we are just kind of running out of momentum. It’s not necessarily that the market is in desperate need of some type of massive drop from here. It’s just that we had shot straight up in the air from April. And sooner or later, people start to take profit. They start to question what’s going on. We do have a jobs report on Friday, so that probably comes into the mix, we’ll just have to see how that affects things.

S&P 500 Technical Analysis

The S&P 500 has fallen a bit as well. And again, it’s the same story. I just think we need a little bit of a pullback and that perhaps we are just seeing a situation where market participants are starting to sort out the idea of whether or not we should continue to go higher or if we need to find a little bit of value. The 50-day EMA sits at the 6,318 level and rising. We also have support near the 6,340 level. So, who knows, maybe we will go there in order to find more buyers.

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