NASDAQ Index, SP500, Dow Jones Forecasts – US Indices Look Stretched

NASDAQ 100 Technical Analysis

The Nasdaq 100 has pulled back just a bit in the early hours on Thursday as we are starting to recognize gravity. With that being the case, I would anticipate a little bit of a pullback, but I don’t necessarily think that’s a bad idea. The 21,000 level should be support and below there we could even see a drop all the way to the 20,000 level. I don’t know if it would change much.

Quite frankly, there is a lot of this froth that needs to be worked out and that means we either go sideways or we pull back eventually. That doesn’t mean that we can’t go higher from here, it just means that the more preferable uptrend is one that has a long life, it’s difficult to go vertical and continue to see momentum day after day.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks a little more likely to be stable as we have pulled back just a bit. But a bounce from here makes sense. We’re right around the 200 day EMA. With that being said, I think you’ve got a situation where if we can break back above the 42,000 level, then we go looking at the 42,700 level, where we have recently pulled back from. I do think that we are getting close to a golden cross. And while I’m not a huge fan of that indicator, it is one that a lot of people pay attention to.

S&P 500 Technical Analysis

The S&P 500 has pulled back just a bit as it looks like 5,900 is going to add a bit of resistance at the moment, and as we look at the chart, you can see this is an area where they basically have seen buyers and sellers. If we can break above the 5900 level on a daily close, I really don’t see anything stopping us from going to the all-time highs again.

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