Stock Indices Forecast – Rising Yields Pressure S&P 500, Nasdaq, and Dow

NASDAQ 100

The Nasdaq 100 has fallen a bit in early trading on Tuesday as we continue to see yields jump in America, as the war in the Middle East doesn’t seem to be coming to a conclusion anytime soon. The 30,000 level has offered a barrier yet again, but we did get there pretty quickly, and one would have to ask the question as to whether or not a little bit of gravity isn’t coming back into the marketplace.

The 50-day EMA is rising. It is currently at the 29,143 level, and it continues to go higher, so technical traders may take a look at that as an important level. The candlestick is pretty ugly heading into the American morning, but it’s also overnight electronic trading, which may or may not matter.

Dow Jones 30

The Dow Jones 30 finds itself crawling along the floor here in the last couple of days early on Tuesday, but ultimately, this is a market that is still very much in an uptrend. It’s the rising interest rates that are punishing everybody, including the Dow Jones 30 early in the session, but the 53,000 level underneath looks as if it could potentially be support, as it was previous resistance. Market memory would dictate there should be some type of reaction there, so I am watching this.

S&P 500

The S&P 500 is negative early in the morning, but we are starting to bounce a little bit from the 7,720 level, an area that previously has functioned as support. We’ll see if this is simply consolidation or if it is a market that is likely to continue to go lower.

Even if it does, 7,600 underneath was massive support previously. It would potentially end up having market memory there as well, with the 50-day EMA racing towards that area.

Despite the fact that rates are higher and traders seemingly a little bit nervous, we are still very much in an uptrend,