NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Trying to Pick Up Momentum

NASDAQ 100 Technical Analysis

The NASDAQ 100 has rallied a bit in the early hours of Monday, but we still find ourselves in a situation where there’s a lot of resistance just above, and we do have to be somewhat cautious with that. All things being equal, this is a market that I think you need to watch the previous uptrend line and the 50-day EMA, both as potential barriers to overcome. I do like the idea of buying the NASDAQ this time of year because of the so-called Santa Claus rally, but it’s going to take a lot of faith and a lot of nerves to make that happen. Keep in mind that this week is going to be a little unusual due to the volume.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has pulled back a bit from the 50-day EMA and the uptrend line of the previous channel. So, I’m going to watch the daily close closely, but I do think there’s a real shot that we continue to go higher given enough time. But I also recognize again, this week is going to be very strange due to the fact that it is Thanksgiving on Thursday. And generally speaking, the Friday session, although it’ll be open, is pretty quiet too. Most Americans don’t go back to work until the following Monday. So, with that being said, I think you have a scenario where we could drive to the 47,000 level, but it’s going to be a real fight.

S&P 500 Technical Analysis

The S&P 500 finds itself a little bit bullish in pre-market trading as well, but again, we’re sitting just underneath that 50-day EMA that a lot of people will take a good look at. All things being equal, this is a market that I think continues to see a lot of volatility and choppiness, but I also recognize that if we can break above the top of the 50-day EMA and the uptrend line that we had broken through, then we can really start to take off. If we pull back from here, the 6,500 level is going to end up being an absolute floor in the market. If we were to give that up, it could be very, very negative. Again, though, I think volume will keep this market somewhat quiet and choppy over the next couple of days.

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