NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Look Forward to Fed Meeting

NASDAQ 100 Technical Analysis

The Nasdaq 100 has risen a bit here in early trading on Tuesday, as it looks like we are, in fact, doing everything we can to continue to extend the rally. That being said, you have to be aware of the fact that the FOMC meeting is on Wednesday. So, we’ll see how this plays out. I’m not expecting a huge move during the day on Tuesday, but clearly the overall momentum is to the upside.

So, I think you have to agree that quite frankly, it looks like traders are willing to at least buy dips and perhaps not sell the market. Even if we do sell off here, I would anticipate that the 23,000 level is going to be significant support. And therefore, we need to pay close attention to any move that touches that area, especially if it bounces, that might be a nice buying opportunity.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues to sit just below the crucial 45,000 level, and this is a market that I think will continue to be very choppy and sideways because quite frankly, we’re at this massive level that has now been a barrier three times. But what I do find interesting about this is that if we do in fact break above the 45,000 level, that opens up the floodgates of buying and there will probably be a bit of a FOMO move. A drop from here could send this market closer to the 44,500 level, followed by the 44,000 level, both of which could be buying areas.

S&P 500 Technical Analysis

The S&P 500 has rallied slightly in the early hours here on Tuesday as well, but it is more of a grind higher than anything else. In fact, out of the three indices, this is one that I think probably will be most sensitive over the next 24 hours to the central bank talk and noise. So, I’m paying close attention to how it behaves.

Ultimately, if we do get a pullback towards the 6,300 level, I’ll be looking at that as a potential buying area because, quite frankly, it’s a large round figure and it had previously been significant resistance. So, I think you’ve got a situation where hopefully, they’ll sell it off heading into the FOMC and then start rallying again. It could give us the little bit of value that I think a lot of traders out there are looking for at the moment.

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