NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Recover After Initial Selloff

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially fell pretty significantly on Friday, only to turn around and show signs of life yet again. The uptrend line has been tested, it has been held, and now it looks like we are trying to turn things around completely. The 50-day EMA sits right here at the uptrend line as well, and with that being the case, I think you have to believe that short term dips continue to get bought into in this market, and I think it’s probably only a matter of time before we see a natural drift to the upside in a market that’s been in a nice uptrend for several months.

Dow Jones 30 Technical Analysis

The Dow Jones 30 initially sold off during the trading session on Friday, only to turn around and show signs of life again. We are in very choppy trading at the moment, and I think that is going to end up being the story overall. The 45,000 level underneath continues to be an area that I think a lot of traders will be paying close attention to, as it is a large, round, psychologically significant figure and an area that previously had been important. We are dancing around the 50-day EMA, which, of course, is an indicator that a lot of people will be watching for the trend. I think right now we’re just trying to work off some of the excess here.

S&P 500 Technical Analysis

The S&P 500 initially fell during the trading session as well but has found enough support at the uptrend line to turn things around and really start to jump to the upside. The 50-day EMA has jumped into the fray as well, and I think at this point, we’re just going to bounce around and make a lot of noise and chop back and forth.

With this, I am bullish on the market, but I recognize that maybe we’ve got some work to do before we really get that momentum going. Ultimately, though, I have no interest in shorting, and I think when we do dip a little bit, it ends up being a nice buying opportunity. Again, much like the Nasdaq 100, we have an uptrend line that is holding as a short-term floor.

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