S&P 500 Tests Breakout as Dow and Nasdaq Hold Key Support

NASDAQ 100 Technical Analysis

The NASDAQ 100 has been a bit noisy in pre-market trading and overnight electronic trading on Monday, as we continue to hang around the 50-day EMA. Currently, it looks as if the market is trying to determine whether this has been a bit of a pullback or if it becomes something a little bit more substantial.

It’s a fairly quiet week, economically speaking, as far as announcements are concerned, so it’ll be interesting to see how this plays out. Technical traders most certainly will be watching this 50-day EMA, as they have been for several days now.

Dow Jones 30 Technical Analysis

The Dow Jones 30 initially gapped higher, but then pulled back just a touch as we had bounced from the 61.8% Fibonacci retracement level and the area around the 50-day EMA. The market has been in a nice uptrend channel for some time now.

So therefore, I am not looking to short this market. I’m actually looking for reasons to get long again. A little bit of patience could go a long way here. A break below the 50-day EMA would perhaps change the attitude a little bit, but as things stand right now, I don’t see any reason to get bearish.

S&P 500 Technical Analysis

The S&P 500 has shown itself to be somewhat noisy as well, kind of all over the place in a tight range. But again, this is a market that has recently pulled back. I don’t read too much into this pullback other than we broke out of a consolidation area, and then we pulled back to test it. There are a lot of headlines out there causing headaches, of course.

And we are in the middle of earnings season, but so far, it still looks like an index that there are buyers out there willing to step in and support.