NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Look Soft in Early Tuesday Trading

NASDAQ 100 Technical Analysis

The Nasdaq 100 has broken through an uptrend line in premarket trading on Tuesday, but it does look as if the market is trying to bounce a bit. All things being equal, this is the market testing this major trend line that has been intact from the middle part of May all the time to now. If we can break above the 50-day EMA and then perhaps the 25,000 level, that would be very bullish for the Nasdaq 100. If we cannot, then I think we will test 24,000.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has fallen pretty significantly during the early hours on Tuesday. At this point, we are in the midst of trying to break through the bottom of the up-trending channel that we have been in for months, but we will just have to wait and see. Any bounce from here that recaptures the 50-day EMA could be interesting for a value play. Volume is picking up a little bit, showing a bit of fear, but we are still in an uptrend. It is just a matter of whether we can go now or need to pull back a bit to find more value.

S&P 500 Technical Analysis

The S&P 500 has broken down in early trading on Tuesday as it looks like we are trying to break through the 6650 level. If we continue to the downside, it could open a move toward 6500. A turnaround from here would be impressive, but at the very least, we would need to recapture the 50-day EMA to start thinking about buying. If that happens, then the 6800 level would be the next resistance barrier.

Most of this seems like panic and nonsense in the markets. Every few weeks we go through this and then move higher. Nothing seems to be changing other than complaints about the Federal Reserve possibly not cutting rates and the absence of cheap money on Wall Street, and this is what you get. We will just have to wait and see. Nonetheless, I am not shorting this.

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