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

Nasdaq 100 Technical Analysis

The NASDAQ 100 has rallied a bit during the trading session in the early hours of Wednesday as we are yet again fighting against the 25,000 level. If we can break above the 50-day EMA, then I think that frees the Nasdaq 100 to continue going higher. Ultimately, I think markets will continue to look towards the 26,275 area.

The market will continue to see a lot of buy on the dip type of behavior. The 200-day EMA is sitting right around the 24,100-level offering the floor in the market from what I can see. All things being equal, this is a market that has been consolidating for a while and working off froth. I think eventually we will go higher.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks very much the same in the sense that we have been going sideways for a while and it is positive in early trading. This despite a lot of tough uncertainty at this point in time, it looks like we may try to reach the top of the Monday candlestick and if we can clear the 50,000 level, I would anticipate that the Dow Jones 30 really starts to take off. I have no interest in shorting this market and think that there is plenty of support at multiple levels underneath. I am looking to buy dips.

S&P 500 Technical Analysis

The S&P 500 is pressing up against the 6,925 area, a region that has been pretty resistant over the last 5 or 6 trading days. If we can break above there, then I think the S&P 500 goes to the 7,000 level.

When you look at the S&P 500 over the last several weeks, you can see that we have been stuck in a 200-point range. Eventually something has to give and more likely than not, we should see a continuation to the upside. I do believe that we will eventually break 7,000 and perhaps go looking to the 7,200 level above based on the measured move of the rectangle that we have been forming since roughly the middle of December.