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

NASDAQ 100 Technical Analysis

The NASDAQ 100 rallied a bit during the early hours on Wednesday as the CPI numbers came out at 2.8 % year over year instead of the expected 2.9%. The monthly number was 0.2 % instead of 0.3%. So, everybody is celebrating it in the short term. The question now is whether or not this rally sticks. Probably not, but a relief rally has been needed for a moment here, and we could make a run towards the 20,000 level pretty quickly.

On the other hand, if we were to turn around and break down below the lows of the Tuesday session, that would be a horrible sign. So, watch that for signs of collapse in the NASDAQ, but we’ve had a pretty steep drop. A bounce makes a certain amount of sense.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has rallied all the way to the 42,000 level, but it’s also given back some of that as we got close to the 200 day EMA. If we can break back above there, then it would be a very bullish sign opening up the possibility of a move to the 43,000 level, but I think we need to watch the 41,157 level because if we break down below there, the low of Tuesday, then this thing falls to the 40,100 level.

S&P 500 Technical Analysis

The S&P 500 has rallied as well, but again, we are giving back some of those initial gains from the CPI number, which is not necessarily a strong sign. We do probably need to see some type of bounce here, but really at this point in time, I think you need to get pretty aggressive here on the buy side in order to really push things in a different direction. And at this point, I just think probably your best case scenario is a little bit of a bounce and sideways action, I don’t like buying for a bigger trade right now.

And if we were to break down below the lows of the Tuesday session, we’d probably plunge to the 5,400 level. The geopolitical issues out there, with trade wars and tariffs continue to spook the market. But at the same time, the fact that the stock market has fallen so hard, one would think sooner or later we get a little bit of a relief rally. We just don’t know how big it’s going to be.

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