NASDAQ 100, Dow Jones 30 and S&P 500 Forecast – US Indices Crushed in Early Trading Again

NASDAQ 100 Technical Analysis

The Nasdaq 100 crashed again early during the trading session on Friday, but the jobs report came out stronger than anticipated. So, we’ll see what kind of effect that has. Quite frankly, we are getting close to a point where the market has to bounce sooner or later, but whether or not that is something that’s sustainable to the upside is a completely different question, obviously, and therefore I think you have to look at this through the prism of a market that needs to stabilize first before you start buying. As far as shorting the NASDAQ 100 is concerned, yes, it might work from here, but quite frankly, you are awfully late in the trade to start trying to do that now.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has fallen pretty significantly during the trading session as well, but it is starting to turn things around. So, at this point, I would have to assume that the market is likely to continue to try to outperform the other indices as the Dow Jones 30 has performed a little better than many of the others.

With that being the case, I like the idea of perhaps waiting to see if we can break above the 40,100 level on a daily basis and then maybe starting to put little positions on in this market to the upside. I wouldn’t short it here. We’ve already hit an area that has a ton of support.

S&P 500 Technical Analysis

The S&P 500 looks like it’s in a free fall again and it seems to be trying to sort out the 5,200 level as to whether or not that is going to be important. If we break down below there, then the 5,000 level is next. But we are starting to get to that part of the market carnage that things are getting so overdone that shorts are probably starting to bail out.

Keep in mind that had you shorted the very top of this, you would have seen about a 16 % gain. We are getting kind of close to that 20 % bear market level. A lot of times there’s a reaction ahead of there. We’ll just have to wait and see. I certainly wouldn’t be a buyer. What you want to see though is a couple days of stability.

For a look at all of today’s economic events, check out our economic calendar.