NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Sluggish in Early Thursday Trading

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially tried to rally during the early hours on Thursday, but it does look like we are running into a little bit of exhaustion. Ultimately, the market formed a bit of a shooting star during the trading session on Wednesday, and looking like it’s trying to do the same thing on Thursday suggests that maybe this blowout above the top of the up channel is probably due for a little bit of a pullback—and that’s fine.

I think that’s typical behavior. Short-term pullbacks that show signs of support after a drop are buying opportunities all the way down to the 25,000 level. The Nasdaq 100 continues to be one of the better performers.

Dow Jones 30 Technical Analysis

The Dow Jones 30 initially tried to rally during the trading session on Wednesday but gave back gains to go looking to fill the gap underneath. The 47,000 level is a large, round, psychologically significant figure and an area that I think a lot of people will continue to pay close attention to, as it was previously resistance and should end up being support based on market memory. The 50-day EMA is sitting right around the 46,140 level and rising, and I do believe that the 50-day EMA will continue to act a little bit like an uptrend line.

S&P 500 Technical Analysis

The S&P 500 is trying to rally a bit, but Thursday has seen a little bit of exhaustion. I think you’ve got a scenario where markets are likely to continue to see hesitation, but a short-term pullback at this point in time opens up the possibility of the 6,800 level being targeted as support due to the fact that it was previous resistance.

A pullback at this point in time, more likely than not, will attract a certain amount of value hunting, and of course, we are still very much in an uptrend despite the fact that we have struggled over the last couple of days. Ultimately, I do think that the S&P 500 is going to try to get to the 7,000 level, which is a large, round, psychologically significant figure that a lot of people will be paying close attention to. Anything above there probably brings in a fresh new round of buying.

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