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

NASDAQ 100 Technical Analysis

The NASDAQ 100 looks like it is, in fact, trying to rally in the early hours of Friday as we challenge the 50-day EMA yet again. If we can break above the 50-day EMA, then it’s likely that the market could go looking to the 25,700 level. Short-term pullbacks, I think, are still possible, and keep in mind that next week is Christmas week, so the markets might be a little illiquid, but with a massive dump of $100 billion by sovereign wealth funds into OpenAI, probably have this market a little excited on Friday.

S&P 500 Technical Analysis

The S&P 500 tried to rally as well, and it is hanging on to some of the gains, but it looks like it’s struggling with the 6,800 level. If it can break above 6,800 cleanly, then it can go much higher. But at this point in time, it looks a lot like a market that’s just grinding away. I’m not expecting a lot here, but I do think that overall, this is a market that should go higher given enough time.

The floor for me, at least, is the $6,500 level, and I think that’s an area that we will continue to focus on longer term. If we can break out to the upside, $7,000 is possible, but I don’t know whether I see that between now and the end of the year without some type of major catalyst. Quite frankly, markets look a little pathetic at the moment, probably due to just a severe lack of interest this time of year.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is doing nothing in pre-market trading as we are hanging around the 48,000 level. If we can break to the upside, the market could go looking to 49,000, but right now it looks like it just doesn’t have the momentum to do anything. Short-term pullbacks are probably more likely than not. They could end up being buying opportunities, but you’re going to have to be patient. We probably have two weeks of really kind of feckless trading here. So, momentum will be crushed by a lack of volume, but longer term, this is a market that goes higher.

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