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

NASDAQ 100 Technical Analysis

The NASDAQ 100 rallied a bit in the early hours of Wednesday as we continued the impulsive move breaking out of the channel. The question, of course, is whether or not you want to get aggressive here with the Federal Reserve interest rate decision and statement coming out later in the day. Really, there’s a lot of room for disappointment here, so what I’m hoping for is a little bit of a knee-jerk reaction to the downside that I can start buying into. We are clearly in a bullish run.

Dow Jones 30 Technical Analysis

The Dow Jones 30 initially gapped higher to kick off the trading session on Wednesday, pulled back to fill that gap and a little bit more, turned around to show signs of strength again, and now we find ourselves threatening the 48,000 region. I do think we break above here, given enough time, but we’ll just have to wait and see what the reaction to the Jerome Powell press conference will be.

The 47,000 level should be a significant amount of support, as it was a significant amount of resistance to the upside, and we can expect a little bit of market memory, I anticipate. This is obviously a very bullish market, and with this being the case, I do think it’s probably going to continue to be a buy-on-the-dip type of scenario.

S&P 500 Technical Analysis

The S&P 500 has rallied a bit during the early hours of Wednesday as well, as we are now above the 6,900 level. At this point, I don’t see much keeping us from getting to 7,000, although we may get a short-term knee-jerk reaction in the market after the announcement. Really, at this point in time, I think it ends up being a buying opportunity, with 6,800 underneath offering a bit of a floor in the market, as it had previously been resistance. So, I do expect to see a little bit of market memory in that neighborhood. I have no interest in shorting this market, nor do I have any interest in shorting any of the other U.S. indices.

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