NASDAQ 100 Technical Analysis
The Nasdaq 100 is rather quiet in pre-market trading during the early hours here on Tuesday, which makes a lot of sense. We are getting close to Christmas, and I think a lot of traders will probably step away from the market and really reflect on the holidays, and less on what is going on in a very low liquidity environment. Nonetheless, this is a market that has been relatively strong over the last several months, and despite the fact that we have kind of wound down the overall momentum, the 25,000 level I believe, continues to be a bit of a floor. I do not really see a situation where you should be shorting this market. If it drops, it is probably going to end up being a buying opportunity.
DOW JONES 30 Technical Analysis
The Dow Jones 30 looks very much like a market that is just killing time on the way to the holidays, and with that, the market will continue to be very choppy overall, and as a result, the 48,000 level is an area that I would look at for support, but I think it is more of a spongy area. I do not think it is a brick wall, and in fact, we have been below there a couple of times already in the last week or so.
Nonetheless, it does look like buyers jump in to protect, and I think we are going higher overall. The next couple of days, of course, could be fairly quiet, but as we head into the new year, I fully anticipate that this market will attack the 49,000 level. Any short-term pullback at this point will more likely than not have to deal with the 50-day EMA; the 47,000 level underneath there is massive support from what I can see.
S&P 500 Technical Analysis
The S&P 500 is also quiet, and again, I think that is something that you would expect. So with this being the case, I think you have a situation where the 6,800 level is going to be support right along with the 50-day EMA. The 50-day EMA is a bit of a trendline, and I think we have got a situation where if we get anywhere near there, the buyers will jump back in and pick this up. But again, as I said, with Christmas being Thursday and Friday essentially being a holiday as well, I do not think that we have big movement ahead. We might get a little bit of a move over the next day or so, but I would not look for anything explosive. Longer term, this is still a very bullish market, and that does not change. So with that, I think the S&P 500 challenges 7,000 probably early next year.
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