NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Show Fears of AI Bubble Again

NASDAQ 100 Technical Analysis

The NASDAQ 100 looks as if it is going to drop a bit, as the sales call and guidance from Broadcom have people worried about the AI bubble again. Quite frankly, I do not know if this matters much, and all things being equal, there is a situation where buyers will come in and pick this up sooner or later. The $25,000 level is going to end up being support right along with the 50-day EMA. To the upside, the $26,000 level continues to be a bit of a barrier, but given enough time, the market probably breaks out to the upside and continues going higher.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is not as influenced by AI, and as a result, it is sitting here after having a very strong day on Thursday. This is a buy-on-the-dip scenario with no interest in getting too cute. Trying to get too short at this point is rather foolish. If there is a little bit of a pullback, buyers should step in, or a recovery in the other indices may translate into higher prices here. Either way, the expectation is for higher levels.

S&P 500 Technical Analysis

The S&P 500 has some AI exposure, so there could be a bit of negative influence from the Broadcom situation, but not as much as the NASDAQ 100. It looks like the market may be a little bit soft at the open, but it still appears to be trying to break higher. As a result, the outlook remains positive.

The 6,800 level continues to be an area that offers support, right along with the 50-day EMA. Like the other two indices, there is no interest in trying to get short here. The belief is that the S&P 500 reaches 7,000, and it could be a coin flip as to whether that happens by New Year’s Eve.

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