NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Mixed in Early Trading

Instrument: US Indices Technical Analysis

The NASDAQ 100 is slightly negative in early trading, but quite frankly, I wouldn’t read too much into it because it is a non-farm payroll week. As we are on the day of Wednesday, we will also get the ADP non-farm payroll, and that might cause a little bit of volatility.

Ultimately, we are in an uptrend despite the fact that we have spent the last couple of months grinding back and forth. It does make a certain amount of sense that eventually the buyers take over again, especially when you look at the other indices. Right now, this is more of a buy on the dip situation.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has definitely taken center stage recently, as the idea of rate cuts and larger companies perhaps building in Venezuela has helped. At the end of the day, with looser monetary policy typically comes infrastructure builds, projects like that, and that of course significantly impacts the Dow Jones 30.

Short-term pullbacks will continue to be buying opportunities here as well, with the 48,000 level a significant floor in the market, especially with the 50-day EMA approaching it. At this point, I really don’t see what keeps us from getting to 50,000. I just don’t know if it happens during the Wednesday session. Any pullback at this point in time should be looked at as a potential opportunity.

S&P 500 Technical Analysis

The S&P 500 is essentially flat, but it is also basically at all-time highs. At this point, I think we’re going to try to get to the 7,000 level. Again, this is another buy on the pullback type of situation that you have to pay close attention to.

I like the idea of trying to find value on each of these dips with the 50-day EMA and the 6,800 level below offering support. I have no interest whatsoever in shorting the S&P 500 or any of the other indices.

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