US Stock Market Forecast – Mixed Indices Eye Crucial Technical Supports

NASDAQ 100 Technical Analysis

The Nasdaq 100 fell during the early part of the trading session on Thursday in pre-market trading, as we are now threatening the 50-day EMA. The 50-day EMA has recently been held like a trendline, so this could be an area where traders are very interested in trying to find value. The 10-year yield is starting to uptick a little bit, and that seems to be weighing on technology.

Dow Jones 30 Technical Analysis

The Dow Jones 30, on the other hand, is positive in pre-market trading as it looks like the 53,000 level is still an area people are going to be watching closely. Short-term pullbacks have been bought into over the last couple of days, with the 52,000 level being the significant support. All things being equal, the Dow Jones 30 is still very much in an uptrend, and that certainly hasn’t changed in the last 24 hours.

S&P 500 Technical Analysis

The S&P 500 has pulled back from the 7600 region as we continue to build a bit of an ascending triangle. This suggests that there is more upward pressure building over time, but we have not had enough momentum to get that big breakout that traders might be hoping for.

Keep in mind, there are a lot of headlines out there that will cause headaches—earnings, for example—but we also have the situation in the Middle East that seemingly won’t go away, and of course, we have the inflation concerns. For what it’s worth, both CPI and PPI came out cooler than anticipated in the United States this past week, which, of course, could give a little bit of hope to stock traders, but one announcement does not make a trend. So I think that is still something that a lot of traders will be paying attention to. Regardless, we’re in an uptrend, and we are grinding higher over the longer term. This pullback could be thought of as a value by some.

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