NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Looking to Go Higher on Monday

NASDAQ 100 Technical Analysis

The Nasdaq 100 rallied a bit during the early hours on Monday as we are heading towards the open, and it does look like the Nasdaq 100 wants to go higher given enough time, which makes sense because there is a bit of celebrating of the idea that the Federal Reserve is, in fact, going to cut rates. I think that’s pretty obvious now with the latest jobs number.

That being said, it doesn’t mean that it gives us all clear forever and quite frankly, this is a market that is likely to continue to stay somewhat frozen in this channel. I’d watch the 23,250 level and the 50 day EMA level very closely in general, because it could give you a significant amount of support for a market that has been trending quite nicely. At this point, I don’t see things changing.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is slightly positive. This is one that I’m not as excited about, mainly due to the fact that it looks like we are trying to form some type of rising wedge. Maybe we go sideways instead. That’s entirely possible, but ultimately this is a market that has underperformed for some time in comparison to the Nasdaq and the S&P 500. So, I think it’s showing a little bit of malaise here. I would get long before I would get short, but I just don’t see the reason to diddle with this market right now as it’s basically killing time.

S&P 500 Technical Analysis

The S&P 500 is slightly positive in the early hours, but it is struggling with this 6,500 level. This is a large, round, psychologically significant figure that will continue to attract a lot of attention. But overall, this is a market that’s positive. You pretty much have to admit that no matter who you are, even if you are bearish. We have a little bit of an up-trending channel here as well. Probably not as clean as the NASDAQ 100, but it’s generally doing the same thing. Ultimately, I think pullbacks are buying opportunities. The 50-day EMA at 6,344 is your major support level, perhaps with the uptrend line sitting just above there. If we can break above the highs of Friday, then 6,600 could be targeted next.

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