NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Quiet in Premarket Trading

NASDAQ 100 Technical Analysis

The Nasdaq 100 has gone back and forth during the early hours here on Tuesday as we don’t really have anywhere to be, just hanging around the $24,600 level. Ultimately, this is a market that’s been strong for a while, but it looks like it’s going to go sideways a bit. And that probably makes a bit of sense considering that employment numbers are  coming out of the United States during the Friday session. So, it’s possible we may just have a sideways week.

Regardless, I don’t have any interest in shorting this market. It’s far too strong and there is a trend line underneath that would offer support. So, it’s probably buy on the dip here more than anything else.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is sideways as well, really with nowhere to be, as we continue to see a lot of lackluster trading. And again, I think it’s the same situation here, we’re just basically killing time between now and the jobs number. If we do fall from here, I think the 46,000 level could be an area of support as traders will be watching it very closely.

Even below there, then you have the 50 day EMA and the 45,000 level, which should be a hard floor in the market. I believe that Dow Jones 30 is going to end up being a buy on the dip scenario, like most other things at the moment.

S&P 500 Technical Analysis

The S&P 500 is quiet as well, as it’s sitting at the 6,660 level, just basically doing nothing. I think at this point, we’re probably going to end up sideways here as well, but I do prefer buying dips. I certainly don’t want to short any of these indices and the S&P 500, of course, won’t be any different. This is a market that over the longer term should continue to go higher. And I do think that we’re going to try to reach the 6,800 level probably in the next couple of months. But right now, we’re just kind of hanging around waiting to see what the Federal Reserve is going to do, waiting to see what the jobs numbers are.

There are a whole slew of questions out there when it comes to monetary policy that people continue to ask. And that, of course, has a major influence on the markets. We are in the middle of a channel that is backed up by not only the uptrend line but the 50-day EMA, so definitely well supported even if we do drop from here.

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