NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Look to Rally on Monday

Nasdaq 100 Technical Analysis

The Nasdaq 100 bounced a bit from the 50-day EMA during trading on Monday in the early hours, and it does look like it’s trying to hang on to the overall bullish attitude that it had been in for a while. The market has respected a trend line yet again, at least so far, and now it looks like it is ready to get back to work after holiday trading.

The 26,000 level above will continue to be something that I think you’ll have to watch. If we can break above there, then it’s a really good sign. A breakdown below the uptrend line, ostensibly somewhere just below 25,000, could lead to more of a pullback, perhaps down to 24,000, where I’d expect to see even more support.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks like it’s going to be somewhat quiet in early trading, but it does have that general look of a recovery, especially after the candlestick for the Friday session. We initially tried to break down below 48,000 but did not live below there very long and then turned right back around.

In fact, you could make an argument that the Dow Jones 30 led the way to the upside for the others.

S&P 500 Technical Analysis

The S&P 500 looks like it’s going to be a bit positive in early trading as well. I still think the S&P 500 is trying to find an excuse to get back to the 7,000 level and try to take that out. Given enough time, I think that does happen.

In the short term, though, watch the 50-day EMA as it sits just above the crucial 6,800 level. This is a bullish market. It’s a noisy market, but it is a bullish one before it’s all said and done. I like these dips as potential buying opportunities, and it looks like the rest of the market does as well.

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