US Indices Forecast – Buyers Step In as S&P 500 Eyes 7,800 Resistance Target

NASDAQ 100

The Nasdaq 100 has rallied just a touch during the early part of pre-market trading on Friday, as it looks like we are trying to turn things around and show signs of life again. We are in an uptrend, and the recent pullback has been a lot of noise and a lot of drama. But at the end of the day, we aren’t that far from all-time highs. And I think the buyers are trying to come back into the picture and reassert their dominance.

Dow Jones 30

The Dow Jones 30 is looking very much like a market that is trying to overtake the 53,000 level. That’s an area that’s been important previously. And if you look at the most recent shot higher, we are bouncing off of the 61.8% Fibonacci retracement level, something that technical traders will love. Volume during the previous session was somewhat elevated in comparison to the last couple of weeks, but it’s worth noting that the market is still extremely bullish from a longer-term standpoint.

Traders watching that interest rate in America rise have caused some issues. There are some concerns about the bond market at the moment, but the reaction to the bond buyback announcement may have been a little overdone if it is, in fact, a temporary thing.

S&P 500

The S&P 500 is starting to bounce a bit in pre-market trading as well. This is a market that’s been in a nice strong uptrend. A little bit of a pullback now. The question is, will value hunters return? It certainly looks like they’re trying to, at least in the pre-market trading.

The 7,800 level above is an area that has been a significant barrier and potential target for bulls. To the downside, the 7,600 level was the previous resistance barrier. That could have a little bit of market memory attached to it as well.