NASDAQ 100, Dow Jones 30 and S&P 500 Forecast – US Indices Have a Rough Overnight Session

NASDAQ 100 Technical Analysis

The Nasdaq 100 was all over the place during the early hours of Thursday, especially during the European session as the Europeans sold the thing off, but it now looks like it’s trying to bounce a bit. All things being equal, this looks like a market that is banging around between an uptrend line and the 200-day EMA, as well as the psychologically significant 20,000 level, which is just below that 200-day EMA.

The market is pretty oversold at this point, so a bit of a short-term relief rally would make a certain amount of sense. So, with that being the case, I think a lot of traders are starting to dip their toes in the market. Whether or not it is a move that has legs and can stick around for a while is a completely different question. But right now, it looks like we are at least trying to stabilize a bit.

Dow Jones 30 Technical Analysis

The Dow Jones 30 initially fell as well, but it looks like it’s fighting the 200-day EMA and the 42,000 level. Both of these are significant resistance from what I can tell. And if we can clear the heights of the reaction candle to the Federal Reserve on Wednesday, then I think we have a deeper correction just waiting to happen. That being said, we are still very much in a downtrend. So, I think it’s more or less a relief rally. And that should be kept in the back of your mind.

S&P 500 Technical Analysis

The S&P 500 has gone back and forth during the course of trading on Thursday as well in the early hours, using the 200-day EMA as resistance, which is just above the 5700 level, and the 5600 level underneath as significant support. Again, this is a market that’s very bearish, but is probably a little overdone, so a bit of a relief rally would make quite a bit of sense here.

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