Stock Market Forecast – NASDAQ 100 Tests 30,600 as S&P 500 Defends Breakout

NASDAQ 100

The NASDAQ 100 has risen a bit in early trading on Monday as we are clear of the 30,000 barrier and now starting to really kind of dig into the noise above that extends to 30,600.

Breaking out of this rising triangle is a good sign, and since then we have remained a little bit elevated, but it seems as if momentum is a little bit difficult to get here. We’re in the middle of earnings season, so that’s not a huge surprise. And of course we have that noise coming out of the Middle East, but on the whole, this looks like a pretty bullish chart.

Dow Jones 30

The Dow Jones 30 continues to drift a little bit lower, although slowly, and it is still very much in an uptrend. At this point in time, it becomes interesting at lower levels, but right now, it looks like it’s just simply floundering, and it doesn’t really know what to do.

It’ll be interesting to see how this plays out, but we’ve been in a nice uptrending channel for quite some time, and really nothing’s changed other than it’s acting weaker than the NASDAQ, for example.

S&P 500

The S&P 500 initially shot higher during the day. Right now, it’s kind of floundering as well, but ultimately, this is a market that, given enough time, looks as if it wants to continue higher.

It has broken out of an ascending triangle or a bullish pennant, depending on how you mark things out. Either way, from a technical analysis standpoint, that is bullish. Higher rates don’t help. The uncertainty in the Middle East certainly isn’t helping either. But as things stand right now, it seems like the S&P 500 doesn’t care and continues to look bullish regardless, so something to keep in mind.