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

NASDAQ 100 Technical Analysis

The Nasdaq 100 has rallied in the early hours on Wednesday again, as traders are looking to push the U.S. Indices higher. And I do think that this is a market that remains more or less a buy on the dip type of situation. I’ll be watching the 21,000 level very closely, assuming that we even pull back the almost 400 points that it would take to get there.

The NASDAQ 100 continues to enjoy the overall momentum and now we are starting to enter the time of year where the so-called Santa Claus rally effect could come into play as traders are trying to pad their results for the year.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues to sit just below the 45,000 level. I think at this point, it will eventually break out. And I do think that a lot of traders will be paying close attention to this because a break above the 45,000 level will probably bring more money into the market.

Short-term pullbacks should see plenty of support underneath. And I think it’s probably only a matter of time before the 50-day EMA crosses above the crucial 43,750 level, solidifying that potential floor in the market. On a break above the 45,000 level, I think we get to 46,000 fairly quickly.

S&P 500 Technical Analysis

The S&P 500 sits right at all-time highs. I don’t really see any reason why it won’t continue to go higher. I am going to be a buyer on dips now that we have cleared that crucial and psychologically important 6,000 level. 6,000 is only important because of the psychology involved in it, but it did take a while to break above there. And the fact that we’ve done it now suggests that perhaps we’re in the clear.

I don’t want to say that we can’t fall. It’s just that more likely than not, anytime we do get a bit of a pullback in this market, we’ll probably see plenty of value hunting. I have no interest in shorting any of the US indices, but I recognize that Friday with the non-farm payroll announcement could be a bit of a blip on the radar that causes some type of choppy volatility.

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