NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Wait for Jerome Powell

NASDAQ 100 Technical Analysis

The Nasdaq 100 has gone back and forth showing signs of choppiness in the early part of Wednesday, which makes sense because we have the FOMC interest rate decision coming out later, so between now and then, I wouldn’t expect much, but we are going to be parsing the press conference quite closely, I think, and that is probably where the truth lives when it comes to where we go next. The Nasdaq 100 has been flat for several days, but it’s been bullish longer term, so I think any short-term pullback at this point in time probably looks as if it’s a buying opportunity for most traders. Pay attention to the 25,000 level.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is flat as well. And I think a pullback at this point in time, although possible, I don’t think it means much, as the 47,000 level and the 50-day EMA sit right there. And I think this is a buy on the dip scenario as well. If we can break above the 48,250 level, then it opens up the possibility of a move to the 50,000 level. I do think this is a market that is simply trying to work off some of the excess froth on the way up, and now that we’re heading into the end of the year, we’ll see how this plays out, but the Santa Claus rally should be coming along any day if, in fact, it does show up.

S&P 500 Technical Analysis

The S&P 500 is also very quiet, but it’s sitting just above a major support level in the form of the 6,800 level. The 6,800 level, of course, is a large, round, psychologically significant figure that people pay close attention to. And of course, we have the 50-day EMA underneath there. I do think any pullback at this point in time is more likely than not to have traders looking to pick up value, perhaps buying the right-hand side of the V in order to take advantage of the longer-term trend. I have no interest in shorting the market, but if we were to break down below the 6,500 level, then I think you need to seriously consider that the trend may be in serious trouble. Until then, I remain bullish.

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