NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Quiet Ahead of Holiday

Nasdaq 100 Technical Analysis

The Nasdaq 100 was very choppy and quiet in premarket trading on Tuesday. But really at this point in time, I think we’ve got a situation where it’s only a matter of time before we break to the upside. If we can break above the 26,000 level, then we could go much higher. But as we roll into the New Year’s Eve holiday and, of course, New Year’s Day, I think the markets are probably going to do very little.

Lack of Volume

Short-term pullbacks I do think, open up the opportunity to start buying again. I do think that the market eventually goes higher. But I also recognize that there is a severe lack of volume this time of year, and therefore, I think you’ve got a situation where you can’t expect too much in the next couple of days.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has, of course, been somewhat hanging around trying to turn things to the upside, perhaps going to the 48,850 level. If we can break above there, then it would make a certain amount of sense that we could break out towards the 49,000 level. The 48,000 level underneath should remain a floor.

Looking for Upside

All things being equal, I do think that we go higher. It’s just that the next couple of days might be lackluster and just kind of flailing around aimlessly.

S&P 500 Technical Analysis

The S&P 500 continues to be rather quiet, but positive. We are just sitting basically where we started for the trading session in premarket. I do think eventually we try to break out to the upside. I certainly wouldn’t short this market. And as things look like right now, the 6800 level is an area that I think ends up being a floor with the 50-day EMA opening up a bit of a support barrier as well.

Ultimately, I do think we go looking to the 7,000 level. That, of course, will have a lot of psychological pressure to it. However, if we can move beyond that, then we can really get moving. Ultimately, though, this is a market that you’re looking for short-term dips to buy into. And again, I think this is a situation where it’s the end of the year, there isn’t a whole lot of action to be had, but we’re clearly in an uptrend.

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