NASDAQ Index, SP 500 and Dow Jones Forecasts – US Indices Pull Back a Bit in Premarket Trading

NASDAQ 100 Technical Analysis

The NASDAQ 100 has pulled back just a bit during the trading session here on Tuesday, as we continue to see the same area act as support and resistance, we have the 21,500 level as a floor and the 22,000 area, or somewhere in that area, as resistance. This is a market that I think is trying to figure out whether or not it can continue to go higher. I don’t really see any reason why it won’t, but we may have to work off some of the excess froth in the time being. I still favor buying dips occasionally in this index.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has pulled back as well, as we continue to see a lot of noisy trading between 43,000 above and 41,750 below, which also features the 200 day EMA as well as the 50 day EMA just above it. This is a similar situation, only we are not trying to get to all-time highs here, we’re trying to break above that crucial 43,000 resistance barrier. In the meantime, I think we are working off some of the excess move to the upside, and this is probably normal, all things considered.

S&P 500 Technical Analysis

The S&P 500 pulled back just a bit during the early hours here on Tuesday to hang around the 6,000 level, which, of course, is a large, psychologically significant figure. This area had previously been both support and resistance, and I think ultimately what you’ve got is a situation where we are doing the same thing in the S&P 500 that essentially that we are doing in the NASDAQ, although we are not as close to the all-time highs.

I do favor the upside, but I think we probably have a lot of back and forth noise in the time being, as traders continue to see a lot of questions asked about the overall trend and the fact that we had gotten here so violently. We melted down and then we shot straight up in the air like being fired out of a cannon, and at this point in time, I think the market is very thankful, quite frankly, that it’s more of a slow grind higher than anything else.

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