NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Look a Bit Flat

NASDAQ 100 Technical Analysis

The Nasdaq 100 is a little bit choppy in pre-market trading as we are just kind of hanging around the 25,600 level. The market did end up forming a bit of a hammer for the trading session on Wednesday, so I do think that we have a situation where traders are trying to get things going to the upside again. But even if we drop from here, I think there’s plenty of support near the 25,000 level. We’re in an uptrend—that hasn’t changed. I’m not shorting this market, and I do believe it’s only a matter of time before we continue to see momentum to the upside.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has found itself to be slightly negative, but really, at this point in time, it’s looking at the 47,000 level as a major floor in the market. The Dow Jones 30 has pulled back just a bit during the trading session here on Thursday, and it looks like we are going to try to reach the $47,000 level. That level is an area that previously had been resistant, so it should now be support. I think market memory will be a big factor here, and looking at the chart, we are obviously in an uptrend. I have no interest whatsoever in trying to short this market, although it is admittedly a bit of a laggard when compared to the Nasdaq 100 and, of course, the S&P 500.

S&P 500 Technical Analysis

The S&P 500 pulled back just a bit as we are hanging around the 6,800 level. The 6,800 level is a level that I think a lot of traders have been watching very closely, as it is previous resistance. But even if we break down below there, it’s likely that we open up the possibility of a move to reach the 50-day EMA, where the uptrend line is coming into the picture as well. All things being equal, this is a market that continues to see a lot of volatility as we’re going through earnings.

All things considered, I think short-term pullbacks open up the possibility of trying to find value anytime we can. The S&P 500 is likely to go looking to the 7,000 level, which of course is a large, round, psychologically significant figure. With that being said, I think you’ve got a situation where we’ve been in a nice uptrend—at about a 45-degree angle—and it looks like that’s just going to continue. It’s really not until we break down below the 6,600 level that I would be a bit skeptical.

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