NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Continue to Attempt a Recovery

NASDAQ 100 Technical Analysis

The NASDAQ 100 rallied a bit during the course of early trading on Tuesday, reaching towards the 21,000 level in overnight trading, but we’ll have to see whether or not we can overtake that because that to me is a very important level.

If we can recapture that and perhaps break above the 50 day EMA, which sits just above there, that could get more momentum into the market and people jumping into the NASDAQ 100. We have seen a pretty significant and choppy drive lower as of late, but it does look like it’s coiling up like a spring. Again, if we can overtake the 50-day EMA, I think the NASDAQ 100 probably rallies.

Dow Jones 30 Technical Analysis

The Dow Jones 30 rallied a little bit in the early hours, but we still haven’t taken out the top of that Friday candlestick. If we can take out the highs of the Friday candlestick, I think at that point the Dow Jones 30 is probably going to try to continue that overall consolidation between the $42,000 level on the bottom, and the 43,500 level on the top. Overall, we’re still in an uptrend, so I prefer to buy dips, not necessarily try to short this market.

S&P 500 Technical Analysis

And finally, the S&P 500 gapped a little bit to the upside, rallied a bit, and has given those gains back for the most part. We still, though, look as if there is support just below, especially near the 5,800 level. So, I think you might have a situation where we’re trying to build a base in order to build the necessary confidence to go higher.

Keep in mind that we will be watching CPI on Wednesday very closely. That will have a major influence on what happens with the market. What we want to see is CPI come in as expected, or better yet, maybe a little lower than anticipated. So far though, the data continues to suggest that inflation and growth are still rather strong in America.

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