NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Continue to Look for Upward Momentum

NASDAQ 100 Technical Analysis

The NASDAQ 100 pulled back a little bit in the early hours on Thursday, dropping about 30 basis points as New York is starting to wake up. The reality is that the NASDAQ 100 had a very strong session during the previous day, and we may have to work off some of that froth. We did of course get the PPI numbers coming out. They came out as expected in the core number, but the full number, the full reading was twice what was expected.

So really, at this point, I think you’ve got a situation where, you know, maybe the market gives us a little bit of a pullback that we can take advantage of. I certainly wouldn’t be short of the NASDAQ 100 and I think support is all the way down to the 21,000 level.

Dow Jones Technical Analysis

The Dow Jones 30, as you can see, has done very little, it is just kind of hanging out here. That tells me that it is getting close to the end of its pullback process and I think that 43,750 level is going to continue to offer support, especially with the 50 day EMA sitting just below there. So really at this point, I think you’ve got a situation where value hunters will come back into the picture given enough time. I again have no interest in shorting this market.

S&P 500 Technical Analysis

And then finally, the S&P 500 is trying to break out to all-time highs, but I think we probably get a little bit of a short term pullback before we find more momentum. Either way, the 6000 level is a major round figure that had previously been extreme resistance, and it should now be support, so I would play it as such. I like buying the dips at this point in time.

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