NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices on Holiday, but Look Strong

NASDAQ 100 Technical Analysis

The NASDAQ 100 of course, was closed on Thursday due to the Thanksgiving holiday, but quite frankly, we can read a lot out of the last couple of days. It looks like we are trying to break above the crucial 25,250 level, and that tells the story.

If we were to jump above there, I think we kick off the so-called Santa Claus rally pretty early this year and we’re off to the races. A short-term pullback isn’t necessarily terminal at this point. I think it just shows the market trying to consolidate and figure out where to go next. This is a market that will remain noisy in general, but I believe that we have to look at the market through the prism of one that is in a longer-term uptrend despite the fact that it felt pretty rough there for a couple of weeks.

Dow Jones 30 Technical Analysis

The Dow Jones 30 again was closed on Thursday, as you would expect, but we are above the crucial 47,000 level, and in a sense, the Dow Jones 30 has led the way for the other indices. This suggests to me that we are, in fact, going higher, although we might get a short-term pullback. Watch that $47,000 level for potential support. Underneath there we have the 50-day EMA and the remnants of the channel that did get a little bit broken down recently. So I don’t know how much I pay attention to that particular trend line. We’ll just have to wait and see if it does prove itself. Ultimately, I think we’re going back towards the 48,500 level.

S&P 500 Technical Analysis

The S&P 500, like the other indices, was closed during the Thursday session, but did close on Wednesday above the crucial 6800 level. That, of course, is an area that’s important. We’re at the top of a consolidation area. So, I would watch the candlesticks from November 14 and Thursday, November 13. Watch that area because if we can clear the 13th, then we can really start to take off to the upside. I think that opens up 7000.

This is a bullish market that is consolidating. Therefore, dips probably continue to be buying opportunities. I have no interest in shorting the S&P 500. I don’t typically have short US indices anyway. So with that being the case, I think this looks like a healthy market. Maybe you’ll get a little bit of value, but if you take out that November 13 candle, that just means we’re going higher.

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