NASDAQ 100, Dow Jones 30 and S&P 500 Forecast – US Indices Rally Slightly in Thin Electronic Overnight Trading

NASDAQ 100 Technical Analysis

The Nasdaq 100 has rallied a little bit in overnight electronic trading, but you have to keep in mind that Monday is also President’s Day in the United States, so this would have been influenced by electronic futures trading in Asia and Europe. All things being equal, this is a market that is still very positive and I do think you have to look at it through that prism.

Short term pullbacks should end up being buying opportunities as we are breaking out to the outside. At this juncture, the market is going to continue to see plenty of buyers underneath, especially near the 22,000 level. And then after that, the 50 day EMA underneath continues to rally rather significantly higher as well.

Dow Jones 30 Technical Analysis

The Dow Jones 30 of course has done the same thing, but again, this is President’s Day in the United States. So therefore, it won’t really have much in the way of true volume. Either way, it looks like we’re going to continue to consolidate and perhaps try to build that pressure to the upside.

If we can break above the 45,000 level, that obviously would be a very bullish sign. But right now, I think we’re more or less in a holding pattern. We are still bullish overall. It’s just that we don’t have the momentum to leap over the barrier and continue going much higher. Short term pullbacks, I think, continue to get bought into.

S&P 500 Technical Analysis

And finally, the S&P 500 looks as if it is trying to do what it can to break out to a fresh new high, much like the NASDAQ 100. But again, it’s a holiday, so I wouldn’t read too much into it other than the fact that it’s a simple continuation of the longer term trend that we have been in.

The 6,000 level underneath, I think, is going to end up being the floor in the market, especially now that the 50-day EMA is hanging around that same area as well. The market has spent some time consolidating in a longer term uptrend, and now I think it’s ready to continue that move higher that we had seen most of last year.

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