NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Continue to Anticipate CPI

NASDAQ 100 Technical Analysis

The US indices currently look as if they are waiting for the CPI numbers to come out on Wednesday, which does make a certain amount of sense, but needless to say, they are all pretty much bullish. The NASDAQ 100, of course, is going to be looking to rise during the trading session from appearances, as overnight the NASDAQ 100 has rallied fairly significantly, considering that we are still in consolidation.

Nonetheless, we are hanging around the 21,500 level, an area that will probably attract a certain amount of attention and even if we were to pull back, I believe that the NASDAQ 100 should see a significant amount of support near the 21,000 level. I don’t expect to see a 500 point drop, but you never know. The CPI numbers could cause that much havoc on Wednesday morning.

Dow Jones 30 Technical Analysis

The Dow Jones 30 does look like it’s going to continue to pull back a little bit, but we have filled a gap from two weeks ago, so that’ll be interesting to see how that plays out. 43,750 and the 50 Day EMA come in to offer support, and I think at this point you want to see the market bounce a bit before buying it, but I’m not looking to short the Dow Jones 30. That of course would be a great way to lose money in an uptrend. So just waiting for your opportunity here in the Dow.

S&P 500 Technical Analysis

The S&P 500 has pulled back just a bit. I think we may go looking toward the $6,000 level to see if it holds between now and CPI we’ll have to wait and see as we are filling in the gap, so there could be a little bit of support here as well. Either way, not looking to short this market.

What I’m waiting to see is a bit of a pullback and then a bounce, and I want to join on the other side of that V shape. The market’s in an uptrend for a reason, mainly because foreigners are buying US equities due to the fact that the US economy is outperforming everything else. So, with this, I believe that this remains a buy on the dip opportunity.

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