US Stock Indices Forecasts – Fed Decision Threatens Index Volatility

NASDAQ 100 Technical Analysis

The Nasdaq 100 has been noisy, to say the least, in the early pre-market trading on Wednesday, as we are looking at this through the prism of a market that will be getting an interest rate decision later, and that’s going to have a major influence on what happens next.

The Nasdaq 100 has been moving mainly based on concerns about the artificial intelligence trade falling apart and the concerns coming out of the Middle East. The market has been going back and forth. We did see a little bit of a resurgence late during the Tuesday session, but as we head into Wednesday, there is definitely the wild card of the Federal Reserve out there that could cause the market to jump around.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has pulled back as well near all-time highs, with the 53,000 level offering resistance. A pullback from here could open up the possibility of a retest of the 52,000 support level and the 50-day EMA. The 50-day EMA is an indicator that a lot of people watch very closely, but it looks very much like a trendline at this point. Ultimately, we’re still in an uptrend, but again with those Federal Reserve interest rates in play later today, it’s probably a wait-and-see scenario.

S&P 500 Technical Analysis

The S&P 500 continues to hang around the 50-day EMA looking for some type of support here. So far it’s gotten it. It just hasn’t gotten any momentum to the upside. We are still in the midst of an ascending triangle, and it looks like a market that buyers are willing to come in and support, but nobody’s really willing to chase this aggressively. And as such, there’s a little bit of a lack of momentum here. That could very well change after the Federal Reserve interest rate decision. Early in the day though, we may just hang around.