NASDAQ Index, SP500, Dow Jones Forecasts – US Indices Likely to be a Bit Soft

NASDAQ 100 Technical Analysis

The NASDAQ 100 has initially tried to rally during the trading session on Thursday in pre-market trading but gave up those gains rather quickly. The real question right now is going to be whether or not the 21,000 level holds. If it doesn’t, then I think that opens up a potential 500 point drop. We’ll just have to wait and see, but clearly, that is well within the possibility, as we had shot straight up in the air. Quite frankly, I don’t like shorting indices in general, and I certainly don’t like shorting after a move like this.

So, if that breaks down, I’ll probably just wait to buy it at a lower levels. The alternative case, of course, is that we simply go sideways. We’ll have to see how that plays out. A lot of what you’re looking at here from the previous candlestick had to do with a bond auction that went bad in the United States. We’ll see how long the market cares about that, as most of the time it has an attention span of five years old. So read into that what you will.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is testing the 200 day EMA after that massive sell off during the Wednesday session. And now on Thursday, it looks like we may see a little bit of softness, but I suspect somewhere around 41,300, we have pretty significant support. So, I’m not overly worried about this index. I think a short term pullback probably is healthy through Thursday, maybe even Friday as well, but we have made massive move to the upside that now needs to be worked off.

S&P 500 Technical Analysis

The S&P 500 looks as if it may continue to drop from here. If it does, 5,800 could be a target. That’s an area that’s been important multiple times in the past, but we did just get the so-called golden cross when the 50-day EMA crosses over the 200-day EMA to the upside. All things being equal, this is a market that I think will continue to be very noisy. But I do think that we’re just a little overdone. And this is actually welcome news from the bullish side. You can’t go straight up in the air forever, so keep that in mind. It’s worth looking into perhaps trying to find some value here on the pullback.

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