US Indices Forecast – Rising Yields Pressure Wall Street After Multi-Day Run

NASDAQ 100 Technical Analysis

The Nasdaq 100 is drifting a little bit lower in early premarket trading on Thursday, but after the massive rise that we have seen over the last 5 or 6 trading sessions, this is not necessarily something that concerns me, and it’s natural to have a little bit of a giveback after that type of move. Rates did pick up a little bit in America in premarket trading as well, so that could be adding to the pressure, but really nothing scary here. It’s just a simple matter of the market having gotten a bit ahead of itself.

Dow Jones 30 Technical Analysis

The Dow Jones 30 initially tried to rally, looks like it’s basically flat about an hour and a half ahead of the open, and this is a market that too is a little bit overextended, so generally speaking, we will see a pullback or sideways action once the market gets a little overdone. Where that occurs, we do not know, but the shooting star-shaped candlestick from Wednesday does suggest that traders are getting a little bit tired and exhausted here.

S&P 500 Technical Analysis

The S&P 500 also formed a shooting star on Wednesday, and on Thursday has tried to rally, but looks like it’s just a little bit stuck. So again, generally speaking, we either get a pullback or sideways action to work off some of the excess froth.

This has been a nice run, and we must certainly have broken out of the previous consolidation rectangle. The measured move of the rectangle is 7900, so that would be a target for technical traders. The 50-day EMA is sitting right around the 7500 level; that could be thought of as dynamic support if we were to fall that far. Quite frankly, there’s really nothing on this chart that concerns me other than the fact that we got here pretty quickly.

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