US Indices Price Analysis – US Indices Stable Ahead of CPI

NASDAQ Technical Analysis

The Nasdaq 100 has been slightly positive during the trading session here on Wednesday in pre-market trading, but we get the CPI numbers a little bit later and that will have a major influence on what people think about inflation and the Federal Reserve going forward. Ultimately, the Nasdaq 100 looks as if it is forming a bit of a bullish pennant, and we’ve recently seen a shot higher followed by consolidation. Quite often, that’s the market working off some of the excess froth and, therefore, it still looks technically bullish at this point.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is looking very much like a market that is just sitting here dancing around the 54,000 level. It doesn’t have a lot of momentum, but much like the Nasdaq 100, we had seen a shot higher and then consolidation overall to form a bit of a pennant. If we can continue to go higher, that would possibly open up a new all-time high. This is a market that looks bullish from a longer-term standpoint, but recently we’ve been working off some of that excess froth here as well. We are in the midst of earnings season, which has an influence as well. Taking a bit of a breather actually makes a bit of sense.

S&P 500 Technical Analysis

The S&P 500 looks very much the same, going sideways, forming a bullish pennant much like the Nasdaq 100, but that’s not a huge surprise. It’s the same handful of companies that move both indices these days. The 7,800 level above is significant resistance over the last week or so. We’ll see if we can break above there because if we can, the market can break out to fresh new all-time highs and perhaps try to take a stab higher, and based on the measured move, it would be roughly 8,200 if the bullish pennant were to be fulfilled.

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