NASDAQ Index, SP500, Dow Jones Forecasts – US Indices Softer in Early Trading

NASDAQ 100 Technical Analysis

The Nasdaq 100 has initially pulled back significantly during the trading session on Wednesday as we continue to see a lot of hesitation in this area. That being said, I think that NASDAQ will continue to see a lot of buyers going forward and we in fact are already starting to see it as we get closer to New York trading. I think we are working off some of the excess froth and it’s actually pretty impressive over the last couple of days that we have seen this price action that we simply cannot drop significantly. So, with that being the case, I look at this through the prism of a market that is just trying to find a reason to go higher and is also trying to work off this massive inflow.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is a little weaker than some of the others, but really at this point, I think the 42,000 level is an area that you need to pay close attention to and will continue to be important in both directions. Ultimately, if we can bounce from the 42,000 level, then it opens up the possibility of a move to the 42,850 level, followed by 43,500. If we break down below 42,000, then we may want to reset a bit, wait for signs of a bounce and get on the right side of the V pattern that will almost certainly form.

S&P 500 Technical Analysis

The S&P 500 looks pretty well supported near the 5900 level as we fell there overnight but are already starting to see the market turn things around and show signs of life. If we can break above the 6000 level, then it opens up to the 6100 level. The Golden Cross occurred just yesterday, where the 50-day EMA breaks above the 200-day EMA, which is a longer-term buy and hold signal, but we’ll just have to wait and see whether or not that pans out.

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