NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Look Strong Still

NASDAQ Technical Analysis

The Nasdaq 100 has rallied in the pre-market trading here on Monday as we are now threatening the 25,000 level. The market is approaching the top of a pretty significant channel that we’ve been in since the middle of May. So, I think we’ve got a situation where short-term pullbacks will more likely than not end up being buying opportunities.

The 25,000 level of course will cause some noise, but really without the jobs numbers coming out, I think there’s no bad news coming. People are just focusing on the idea that the Federal Reserve is cutting rates, and they’re jumping into the market. If we can break out and above the channel, then we could enter a much more impulsive phase.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has gone back and forth during the previous sessions, adding up to Thursday this week and Thursday looks like it’s more of the same. There is an uptrend line underneath that is going to offer support and ultimately, as long as we can stay above that uptrend line, then I think we’re in good shape. If we break down below the uptrend line, then market participants will almost certainly look at this through the prism of perhaps testing the 50-day EMA. All things being equal though, this is a bullish market, and I just don’t have any interest trying to short US stocks right now. They’re just far too strong.

S&P 500 Technical Analysis

The S&P 500 has rallied a bit during the early hours here on Thursday, and it looks like we are just going to continue to grind higher, I think perhaps trying to get to the 6,800 level. Short-term pullbacks should end up being buying opportunities going forward, as the market is most definitely in an upward trend. And again, if we don’t have the disruption of the non-farm payroll announcement, I don’t really see what stops the market from rising.

I’m not saying that it can’t pull back, but I also suggest that perhaps most pullbacks will be looked at as potential buying opportunities in a market that is anticipating looser monetary policy. And of course, it just has momentum. Sometimes momentum’s really all you need.

For a look at all of today’s economic events, check out our economic calendar.