NASDAQ 100, Dow Jones 30 and S&P 500 Forecast – US Indices Still Looking for Stability

NASDAQ 100 Technical Analysis

The Nasdaq 100 has rallied just a bit during the early hours on Friday, but it’s probably worth noting that it looks not necessarily like a significant bounce, but a market that wants to simply go sideways. Ultimately, I think this is a scenario that if we could break above the 19,750 level, then we could run to the 20,000 level, perhaps even the 200 day EMA.

On the other hand, if we were to break down below the lows of the week, then I think this is a market that drops down to 18,500 pretty quickly. All things being equal, I think this is a scenario where market participants are just waiting for some fundamental reason to start buying. It is a good sign that we are going sideways, though, I have to admit, this is the beginning of trying to turn things around.

Dow Jones 30 Technical Analysis

The Dow Jones 30 rallied a little bit in the early hours, but you can see that during the Thursday session, we broke a pretty significant support level. And at this point, you have to think that the Dow Jones 30 is still a sell the rally type of market, as we just can’t find footing at all over here. So, it’ll be interesting to see what happens next, but it’s not out of the realm of the possibility that we end up at the 40,100 level.

S&P 500 Technical Analysis

The S&P 500 has broken below the 5,600 level over the last couple of days, but Friday looks like it is going to be a return to at least an attempt to consolidate or at least stabilize. If we can break out and break above the 5,670 level, then I think the S&P 500 has a chance of recovering. In the short term though, the prudent thing to do is to simply watch these indices for a sign that they are actually going to recover. Right now, I think everybody is waiting for everybody else to make a move. Sooner or later, we’ll get a fundamental reason to get going. But right now, I just don’t think we have it.

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