NASDAQ, Dow Jones, S&P 500 Forecast – US Indices Pull Back Just a Touch in Early Monday Trading

NASDAQ 100 Technical Analysis

The NASDAQ 100 fell a bit during the early hours on Monday as we continue to just grind back and forth. There is very little in the way of economic announcements coming out, so there’s a good shot that eventually we see buyers come back in and pick this market up. Furthermore, you have to keep in mind that this is a market that’s been in an uptrend for some time, so we might just be working off some of the froth, which would be typical.

The 20,000 level has been important more than once. And I think at this point in time probably offers a significant support level. Above we have the 20,500 level offering a bit of resistance. And if we break above there, then the market is probably going to go higher looking for a fresh new high.

Dow Jones 30 Technical Analysis

The Dow Jones 30 pulled back just a bit during the early hours on Monday as well. But I think at this point in time, it’s obvious that we are well supported. With this being the case, the market is likely to remain buy on the dip just as most indices around the world. And at this juncture, the 43,000 level underneath is probably going to be supportive.

After that, we have the 42,500 level. The 50 day EMA is all the way down near the 41,900 level and is rising. So, I think at this point in time I think you’ve got a situation where traders continue to look for support and I do think that it is probably only a matter of time before we go looking to the $43,500 level and then eventually the $45,000 region which of course will attract a lot of attention.

S&P 500 Technical Analysis

In the S&P 500 we have dropped about 30 points in the first couple of hours of Monday, but at this point, I think there is a significant amount of support near the $5780 level, assuming that we can even drop that far the 50-day EMA is closer to the 4,665 level and is rising and I think given enough time it will show up to offer a little bit of support.

Ultimately, I do think that the S&P 500 will go looking to the 6,000 level which is the large, round, psychologically significant figure that a lot of people pay close attention to, and I would anticipate there probably is going to be quite a few options barriers in that area. We are in an uptrend, we’ve been in an uptrend, and I think it’s only a matter of time before we see people taking advantage of this and taking advantage of DIPs as an opportunity to join what has been such a major move to the upside.