NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Look Weak for the Open on Tuesday

NASDAQ 100 Technical Analysis

The Nasdaq 100 fell fairly significantly during the pre-market trading session on Tuesday as we have re-entered the trading channel. That being said, I don’t think this necessarily means anything other than gravity came back into play. A bounce is more likely than not. The question is whether we will get it here or at the 25,000 level. The 50-day EMA comes into the picture just underneath there, so I think that all ties everything quite nicely together for some type of bounce that traders can take advantage of.

Dow Jones 30 Technical Analysis

The Dow Jones has fallen significantly, but it is hanging around the crucial 47,000 level, which, of course, is a large, round, psychologically significant figure. If the market were to turn around and bounce from here, it’s likely that we will reenter this consolidation area right around the 47,500 level. Short-term pullbacks, I still think, are buying opportunities. It gives us an opportunity to take advantage of the longer-term uptrend, which has been so obvious.

S&P 500 Technical Analysis

The S&P 500 has dropped to reach the 6,800 level. At this point, it looks like some type of bounce is ready to hang around and perhaps find value hunters. Even if we break down from here, we have the uptrend line and the 50-day EMA both coming into the picture. Therefore, I think you have a situation where this is just more of the same action we’ve seen over the last several months. On a break to the upside, the previous consolidation gets targeted and then eventually reaches 7,000. Either way, I don’t have any interest in shorting this market.

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