NASDAQ 100, Dow Jones 30 and S&P 500 Forecast – US Indices Looking to Digest Gains

At this point in time, the market is likely to see a lot of “buy on the dips” behavior. This is a market scenario that looks as if it is a bit “steady as she goes.”

NASDAQ 100

The NASDAQ 100 dipped slightly in the early hours on Monday as we continue to see overall bullish pressure in markets, and the liquidity measures in the United States, I do believe will continue to provide a little bit of a boost for this market. That being said, you do not want to chase this market.

Rather, you are better off looking for short-term pullbacks in order to find cheap contracts that you can take advantage of. I do believe eventually we will go looking to the 20,800 level, which was the barrier that we could not get past the last time. Underneath, I think the 20,000 level continues to be a significant support level. This is an area that you will need to pay close attention to.

Dow Jones 30

The Dow Jones 30, of course, looks rather similar to the NASDAQ 100 in the sense that we are pulling back ever so slightly in the early hours on Tuesday. But quite frankly, this is a market that is extraordinarily bullish, and a little bit of a giveback at this point in time does make a certain amount of sense.

The $42,650 level underneath should end up being a bit of support and most certainly the $41,900 level will be a bit of a floor. I think at this point in time the Dow Jones 30 is looking to get looking to get to the $45,000 level. Remember, with liquidity measures, large stocks such as the ones in the Dow Jones 30 can take advantage of a potential stimulus package and of course infrastructure play.

S&P 500

The S&P 500 pulls back ever so slightly in the beginning of the session, but quite frankly, this is another index that had a very stellar trading session the day before, so I think this is just a little bit of digestion. There’s really nothing on this market chart right now that looks even remotely bearish, and I think we have a massive amount of support right around the 5,800 level.

So even if we were to pull back, I suspect that the downside is probably limited. At this point, I really don’t see much keeping the S&P 500 from trying to get to the $6,000 level between now and the end of the year. Whether or not it does remains to be seen, and of course it will be volatile, but it certainly looks like a lot of market participants have that in the back of their minds, as the $6,000 level has a lot of psychological influence as well.