NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Gap Higher at Open

NASDAQ 100 Technical Analysis

The NASDAQ 100 initially tried to rally during the trading session here on Monday in the early hours, but gave back gains rather quickly. Now, having said that, I do think that this is a buy on the dip market, and I do think that it is probably only a matter of time before we turn things around and go looking to the upside.

A pullback from here could bring the market all the way down to the 23,000 level, although that’s not my base case scenario, it would make some sense at least and I would expect the 23,000 level to be very supported. So, I’m looking at a buy on the dip type of situation, especially through shorter timeframes.

Dow Jones 30 Technical Analysis

The Dow Jones 30 gapped higher after the announcement of the trade deal between the United States and Europe and has now just about filled that gap. The market could turn around here and quite frankly, I expected to, and taking out the highs again could open up a much bigger move because it is an all-time high. And that’s exactly what we got initially during the day, but then pulled back.

Questions remain as to how this trade deal works out, but I think at this point in time, it’s been obvious for a while that Dow Jones 30 was going to do everything it could to break out and this gap getting filled and hopefully a bounce would be an excellent signal for this market to continue to the upside.

S&P 500 Technical Analysis

The S&P 500 also gapped to kick off the session. It hasn’t quite filled the gap on the way back down, I suspect sooner or later we’ll probably get buyers looking to jump in based on value in a market that’s been extraordinarily bullish, but more of a grind to the upside than anything else over the last couple of weeks, as volume, of course, is going to be an issue this time of year. I believe now that the 6,300 level underneath is going to offer significant support.

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