NASDAQ 100, Dow Jones and S&P 500 Forecast – US Indices Look Poised to Rally Again

NASDAQ 100 Technical Analysis

The Nasdaq 100 was slightly positive during the early hours on Wednesday as we got the consumer price index numbers coming out as anticipated. Furthermore, it’s probably worth noting that the NASDAQ 100 is currently sitting just above the 21,000 level, which of course is a large round psychologically significant figure and likely to offer a little bit of support. The question now is if and when we get some type of momentum. It does look like that momentum is at least trying to get back into the market as we start to see New York wake up. But right now, it’s a matter of waiting for momentum to push towards the 21,500 level.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks pretty much the same with the 43,750 level offering support as we initially fell to reach that area only to turn around and show signs of life. Last week we saw an impulsive move higher as Trump and the Republicans won most battles in the United States and now control all three branches.

With this being the case, people anticipate that the United States government will become much more business friendly, so the reaction isn’t much of a surprise. Ultimately, I do think you’re just waiting for momentum to reenter the picture, and now that the consumer price index has come and gone without any big surprise, it looks like we will probably continue the longer term uptrend. The question is when. It’s not really a matter of if, it’s just a matter of when the buyers come in and pick this up.

S&P 500 Technical Analysis

The S&P 500 continues the flirt with the 6,000 level as we are just below it at the time of recording, but quite frankly, that doesn’t really change much. It looks to me like a market that’s trying to consolidate, working off some of the froth from the big move higher.

It’s typical behavior in an uptrend. I do think the pullbacks will continue to be looked at as potential buying opportunities in a market that is obviously very bullish. The S&P 500 is much like other US indices. I simply do not want to short it because quite frankly, it’s just too powerful and strong. Yes, there are earnings reports out there to deal with, but really at this point in time, it looks like there’s not much in the way of market moving surprises.

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