NASDAQ, Dow Jones 30 and S&P 500 Forecast – US Indices Continue to Look Strong

Nasdaq 100 Technical Analysis

The Nasdaq 100 has rallied a bit in overnight electronic trading in Asia and Europe, and it looks like New York is ready to continue pushing this thing higher. In general, this is a market that I think is going to do everything it can to get to the 22,000 level and it really wouldn’t surprise me to see it happen in the next 24 hours or so. After all, there is really not much going on this week that I think a lot of people are going to focus on until we get to later parts of the week, like Thursday, when we get the Federal Reserve announcement.

The one thing that I would point out is that the relative strength index is not quite to the overbought position, but it is getting close. So, a short-term pullback sometime later this week would make a lot of sense, especially as we head towards that interest rate decision. As things stand right now, I think it’s bullish.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks like it’s ready to bounce a bit. It’s sitting here at a previous support level. So, if we can break above the highs of the Friday session, perhaps even the Thursday session, then I think the Dow Jones 30 will continue to go looking to the 45,000 level. This does make a certain amount of sense because we had pulled back quite a bit after the recent surge higher. So, it makes sense that traders will want to get involved at this point as it is now showing a significant amount of value, if you will.

S&P 500 Technical Analysis

The S&P 500 is somewhat flat. I think that remains the case in the short term. Longer term, I do think we go higher. But again, I think a lot of this comes down to what will the Federal Reserve end up saying on Thursday. In general, I think you’ve got a situation where traders will continue to see the 6,000 level as well as the 50 day EMA and subsequent trend line all offer support for the S&P 500, which I believe we’ll start to rally a bit again, as we get the very late year Santa Claus rally coming into effect would be my guess.

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