NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Look to Drop Early

Nasdaq 100 Technical Analysis

The Nasdaq 100 looks a little bit negative as we start to head towards the Tuesday session. Not a huge surprise because the Europeans have been very active and somewhat panicky in the early part of the session due to the Greenland tariff spat between the United States and the European Union. Which of course has absolutely nothing to do with the Nasdaq 100, and therefore, I think you are seeing a potential buying opportunity present itself.

After all, one such example of a company that will still have good news is Tesla. Canada has just allowed EVs from China to be sent into the country. Well, surprise. There are 39 Tesla dealerships, which will now bring over Shanghai-made Teslas to sell in Canada. They will almost certainly box out the Chinese, who are just now thinking about how to set up shop in Canada. Things like that are actually happening. Greenland, it’s a sideshow. So I do think you’re looking at a situation where the Nasdaq 100 is offering a buy on the dip scenario, with the 25,000 level so far offering support. We’ll just have to wait and see if it continues to.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is in a little bit more of a freefall, mainly because there’s no structural support here. I don’t really see anything on this chart that makes me worry about the longer-term trend. I just think you need to be patient enough to buy on some type of bounce. The 50-day EMA sits just above the crucial 48,000 level, which I think is a hard floor as well. And I do think eventually we’ll go looking to the 50,000 level.

S&P 500 Technical Analysis

The S&P 500 is hanging around the 50-day EMA and sits above the 6,800 level. I would anticipate some type of drama kind of move initially during the day. And then I think you are going to have the same situation that you get in the Nasdaq 100.

Eventually, people will realize that while things are going on that could cause problems in the future, we are so far from anything seriously happening that any panic will more likely than not end up being a buying opportunity. With that being the case, a little bit of patience and a whole lot of observation is probably the key. Buying the right-hand side of the V will certainly be the way forward.

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