US Stock Indices Forecast – S&P 500, Nasdaq, and Dow Test Key Support

NASDAQ 100

The Nasdaq has been somewhat choppy in early trading on Thursday as we are trying to figure out where to go next. Ultimately, the 30,000 level above is an area that I think the market will continue to pay close attention to. It has offered resistance here recently, but we also have the 50-day EMA sitting just below current trading.

With the inherent noise out there—yesterday’s noise involved the Treasury buying back the long end of the curve at double the rate expected—this could be choppy. The market certainly didn’t react in an easy way yesterday. It stabilized things after that sell-off, but there will be a lot of questions because of that.

Dow Jones 30

The Dow Jones 30 is slightly negative in pre-market trading, although it’s still a pretty tight range. It’s not really something I look at and find concerning. The 53,000 level underneath was previous resistance; it could be support. I’ll be watching to see if this market bounces. I’d be interested in it, but it might be a little early. We’ll just have to wait and see. Yields rising certainly not helping the situation.

S&P 500

The S&P 500 looks like it is stable again. It had a positive session yesterday, although it gave back quite a bit of the gains. We’ll see if the 7,700 level ends up being a support level, or if we need to go down to the 7,600 level. To the upside, the 7,800 level is your short-term resistance barrier.

Again, we’re still in the middle of earnings. We have the geopolitics in the Strait of Hormuz, and in a weird twist, we have rates going higher as bond markets—traders, I think, are trying to punish the US for that liquidity injection decision. But we’ll just have to wait and see how this plays out.