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

Nasdaq 100 Technical Analysis

US indices seem to want to go higher again, and the NASDAQ 100 looks in the pre-market as if it wants to continue to rally from here and break above the candlestick from the previous session. If so, that means we could have a nasty snapback rally, possibly as high as 20,400, we’ll just have to wait and see. We are in an area of inflection that is worth paying close attention to and it is worth noting that we broke above the 20,000 level.

If we were to turn around and break below the 20,000 level, then I think you continue the downtrend. This doesn’t necessarily seem to be a situation where traders are looking to get aggressively short yet, we’ll just have to see. We need to see some type of extension of selling pressure. At this point, it seems like traders are willing to focus on the idea of targeted tariffs being good.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks very much like it wants to do the same thing. It is halfway between the 200 day EMA on the bottom and the 50 day EMA on the top. At this point, we are breaking towards the 42,600 level and it looks like we could make a run towards the 43,000 level. However, if we were to turn around and break down below 42,000, then I think you have issues, and we probably go plunging again.

S&P 500 Technical Analysis

The S&P 500 is up a little bit during the early hours on Tuesday, but the 5,800 level comes firmly into the picture here. And this is an area that previously had been support. We’ll see if there’s market memory there, just waiting to be found. The 50 day EMA sits at 5,851. So that could offer a little bit of resistance as well. The S &P 500, like the other indices, had been sold off far too drastically for reality to accept this, so a little bit of a bounce does make quite a bit of sense at this point in time.

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