NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Pull Back to Start Week

NASDAQ 100 Technical Analysis

The NASDAQ 100 has pulled back a bit in early trading on Monday but really at this point in time I don’t see anything in this other than we are just chopping back and forth. In fact, we haven’t made a new high or a new low. So, we’re just hanging around.

The 50-day EMA underneath should continue to offer a certain amount of support, and I think that continues to be the key here. Underneath there, you have the 25,000 level, which I think also will offer a significant amount of support, and as long as we can stay above there, I think eventually the NASDAQ 100 has the momentum to break above the crucial 26,000 barrier.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks a bit negative early on Monday but remains above the 49,000 level at least so far. An area that should be supported, as it was significant resistance previously, a bit of market memory should come into the picture here.

I like the idea of buying dips; I have no interest whatsoever in shorting this market, and I think even if we gave up 49,000, 48,000 is a large round number that has a lot of support at it, especially now that the 50-day EMA is starting to come into the picture.

S&P 500 Technical Analysis

The S&P 500 has pulled back just a touch during the pre-market trading, but again, this is just more of the same chop-chop before we try to take out the 7,000 level.

If, in fact, we can take out the 7,000 level, then I think the S&P 500 probably continues its next leg higher. The 50-day EMA and the 6,800 level underneath will offer pretty significant support, and I do think that traders continue to look at those levels as being important. Buying on the dips has been good in the S&P 500 for quite some time, and I think that will continue to be the case here.

For a look at all of today’s economic events, check out our economic calendar.