NASDAQ 100, Dow Jones and S&P 500 Forecast – US Indices Continue to Look for Higher Levels

NASDAQ 100 Technical Analysis

The Martin Luther King Jr. holiday is, of course, Monday. So, keep in mind that the liquidity and the hours that the futures markets were open for where these indices was somewhat limited. That being said, the NASDAQ 100 has rallied a bit, and it does look like we are ready to continue trying to go higher. For what it is worth, we have seen a pretty significant amount of volume on the breakout of the falling wedge, and I don’t see anything on this chart that tells me that the NASDAQ 100 is going to have any issues reaching the $22,000 level eventually. Yes, there will be the occasional pullback, but that pullback should be thought of as a potential buying opportunity in a market that has been bullish for what seems like a lifetime anyways.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is rapidly approaching the $43,750 level. This is an area that I’d be paying close attention to because if we can break above there, it opens up the possibility of a move to the 45,000 level. Short-term pullbacks should see support, especially right here around the 50-day EMA.

So, I’m looking for value to take advantage of here as well as I remain bullish of US indices. And I do believe that the Dow Jones Industrial Average has a little bit of catching up to do in order to fall in line with what else is going on in the markets.

S&P 500 Technical Analysis

We did break above a downtrend line in the S&P 500, and now it looks like we’re going to try to grind our way to the highs again. I believe part of this is due to the optimism around the Trump administration that will do everything it can to pump the stock market higher. We’ve already seen four years of this, so buckle up. This could be an interesting time to be in the S&P 500. Furthermore, we have accelerating growth and inflation in the United States, and that typically means that equity prices will go higher. So again, I like buying the dips here as well. I have no interest whatsoever in trying to short this market.

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