NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Recover in Early Wednesday Move

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially fell, but as we are getting closer to the actual New York open, we are seeing buyers jumping back into the market, trying to recover the 25,000 level. The one thing that I take away from this chart is the resiliency: while it’s not necessarily bullish, it continues to hover above the 200-day EMA even in some of the worst days. With that being said, I think you’ve got a situation where you have to look at it as a buy-on-the-dip scenario, at least as things are now.

Sometimes when it comes to trading in a market, it isn’t so much about what you think it’s going to do, it’s what it won’t do. And what it won’t do right now is fall apart.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has held a trend line and it looks like it is trying to build a bit of a base here after what could have been a really ugly candlestick for the previous session. So, with the recovery that we saw late on Tuesday, it looks like that momentum is carrying into Wednesday a little bit, and we’ll have to see whether or not we can recapture 49,000. Again, this is a scenario where it just doesn’t want to fall apart.

S&P 500 Technical Analysis

The S&P 500 continues to see plenty of support at the 6,800 level and, as a result, it looks like the market is likely to try to get to the 50-day EMA, possibly even the 7,000 level eventually. Whether or not we can break above 7,000 is the question everyone’s been asking for a while, and if we do, that would obviously be an extraordinarily bullish turn of events. As things stand right now, it looks pretty choppy and sideways, but it’s not collapsing, and that’s better than I think a lot of people had anticipated. More sideways action is probably what we are about to see in the same 200-point range or so.

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