NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Pull Back Early on Tuesday

NASDAQ 100 Technical Analysis

The NASDAQ 100 looks as if it is going to do everything it can to pull back it during the trading session here on Tuesday, with the market so clearly being overextended, it does make a certain amount of sense at this point that maybe we have a little bit of a give back if you will, as the market had gotten so overbought. Now, with that being the case, I also think you have to look at this through the prism of a market that if it does pull back, you should be looking for value.

I think the 22,250 level makes a lot of sense as it was a previous swing high. Ultimately, we could turn around and just break higher, but I actually prefer the pullback. It gives it a little bit more sustainability. Keep in mind, this is a non-farm payroll week and it’s on Thursday. So that is something worth paying attention to as well.

Dow Jones 30 Technical Analysis

The Dow Jones 30 initially did try to rally during the session on Tuesday but has given back some of its initial gains and now it looks like it’s probably going to try to pull back towards the 43,750 level or possibly even as low as 43,000. We just broke above a minor resistance barrier and got a little ahead of ourselves. So, I think ultimately you have to look at this through the prism of a market that is clearly bullish but maybe needs to take a little bit of a breather.

S&P 500 Technical Analysis

The S&P 500 has pulled back as well. And much like other indices in the United States, we did have a pretty nice breakout but are probably getting a little overdone at this point. Ultimately though, I do think this is a market that goes higher. I don’t really think that’s going to change. And over the longer term, I would anticipate this is a situation where we go looking at the 6,300 level, but it’s going to take a while to get there and that’s fine.

Short-term pullbacks offer buying opportunities from everything I can see on the chart. I’d be very interested in 6,150, but I’d be interested in 6,000 even more. Again, we have the jobs number coming out this week, so we may get a little bit of squishy softness here and maybe a little bit of perhaps more sustainable and meaningful momentum as we get to Thursday for that announcement.

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