NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Somewhat Quiet Overnight

NASDAQ 100 Technical Analysis

The NASDAQ 100 initially did try to recover just a little bit during the trading session in the early hours of Thursday but has turned around as we await for inflation numbers and that speech from Jerome Powell in Jackson Hole. There is a major uptrend line and the 50 day EMA coming into the same region as that trend line. So I do think the downside is somewhat limited.

This is a market that has gotten a little frothy and volume is a little thinner than usual because we are in the middle of summer. So, it does make a bit of sense that the drop was a little exaggerated during the previous session, but we did bounce quite hard. So, I think not much has changed. This has just been a bit of a shakeup over the last couple of days.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues to struggle with the 45,000 level. It’s like the line of death for this market. No matter what happens, it seems like it’s going to hold. Now, I don’t think that’s the case of longer term, but we’ve got to clear something like $45,250 to really have confidence at this point. Short-term pullbacks should end up being buying opportunities. I mean, they have for the last several months, and I think that continues to be the case as well. There’s really nothing here that looks too bad, other than the fact that the $45,000 level has been so difficult.

S&P 500 Technical Analysis

The S&P 500 fell slightly in early trading as well, but we are right in the area of pretty significant noise. I think the 6,300 level should function as support. If we break down below there, then we could go look into the 50 day EMA. But right now, I’m still more of a buy on the dips trader. I think we’ve got a scenario where the market is just a little bit nervous about the speech from Powell on Friday. If they get that out of the way and it’s not too damaging, then I think we’ll continue our uptrend.

For a look at all of today’s economic events, check out our economic calendar.