NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Looking Forward to Earnings

Nasdaq 100 Technical Analysis

The Nasdaq 100 tried to rally early during the Friday session, but seems a little stuck at the moment as there are some laggards out there causing a bit of a problem. That being said, I don’t necessarily think that one is looking to start shorting this market. I think you’ve got a situation where we probably just stay stuck in this overall range.

Some tech is starting to drag the index down a little bit overall, not just in the Nasdaq 100 but also other indices, but really nothing of consequence. I think we’re just biding our time at the moment.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is pulling back towards the 49,000 level. That’s a large, round, psychologically significant figure, but I think we could drop even further than that. Perhaps we will test the 50-day EMA, which would just be more of the same action. I still believe that the Dow Jones 30 will find its way to the 50,000 level over the next several weeks.

Really, all we need is a catalyst. And that catalyst comes in the form of earnings. We are getting into the meat of the earnings season. Somebody somewhere will do something to push this market to the upside, would be my suspicion.

S&P 500 Technical Analysis

The S&P 500, of course, looks quite a bit like the Nasdaq 100, as they are essentially the same index with a handful of companies running everything. Nonetheless, this is an interesting index because it is resilient due to the fact that traders will rotate into defensive stocks, which is kind of what we’ve seen over the last couple of days.

That being said, as we head into earnings season, that will be a major driver here as well. The 6,800 level seems to be a floor in the market. The 7,000 level seems to be a major psychological barrier, which I do think gets broken eventually, but in the short term may contain gains. There are a lot of concerns out there about trade disputes, which seem to be a never-ending situation here, but ultimately the US economy is still running fairly strong, and that will eventually show itself here.

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