NASDAQ 100, Dow Jones 30 and S&P 500 Forecast – US Indices Continue to Look for Bottom

NASDAQ 100 Technical Analysis

The NASDAQ 100 has been very quiet during the early hours in electronic trading as we are just trying to sort out what’s going to happen next. Quite frankly, this is a market that I think is hanging on by a thread, mainly due to technical support here at the 200-day EMA, but there are a lot of people out there concerned about tariffs and the like.

As a result, I think you could very well see this market end up being a situation where if you do see a rally, you might need to be very cautious. I would not get too big in the market, but I don’t necessarily like the idea of shorting the NASDAQ 100, despite the fact that it’s been sold off pretty viciously. We’ve seen that a couple of times in this uptrend and watched it turn right back around.

Dow Jones 30 Technical Analysis

The Dow Jones 30 on the other hand is turning around to show signs of life on Friday and it’s very possible that we could get a little bit of a bounce from here that opens up a move to the 50-day EMA. Whether or not we can break above the 50-day EMA remains to be seen, but if we do, then it opens up a move to the $45,000 level. A breakdown at this point below $43,000 could open up a move down to $42,000, which of course is supported multiple times in the past and by the 200 day EMA hanging around as well.

S&P 500 Technical Analysis

The S&P 500 does look like it’s trying to bounce a little bit during the session and if in fact it does, I would anticipate that the 6,000 level would be the target. That’s assuming of course that we get enough momentum. Underneath current trading levels, I see the 5,800 level as being massive support, especially as the 200-day EMA is racing towards that level.

We’ve been in an uptrend for quite some time, so to go sideways here and work off some excess froth, I think that makes perfect sense at this point. But the question is, would we break apart and go to the downside? As it stands right now, I don’t think so. It’s been a pretty brutal pullback, but at the end of the day, we haven’t changed the trend.

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