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

NASDAQ 100 Technical Analysis

The Nasdaq 100 rose a bit during the early hours on Wednesday and overnight electronic trading as it looks like we are ready to rip higher again. Keep in mind that the CPI numbers came in as expected at 0.3% month over month and therefore people are breathing a sigh of relief that perhaps nothing has changed.

The fact that we are heading into a renaissance in the United States as far as tech and for that matter, even small businesses, if confidence numbers are to be believed, it’s very likely that the NASDAQ 100 will continue to be extraordinarily bullish. Furthermore, we also have the Santa Claus rally that you should be thinking about.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has initially pulled back just a bit and will more likely than not be a beneficiary of money flowing into the United States. While not small businesses, it does attract a lot of foreign investment and quite frankly, right now, the United States is the only place people are willing to throw massive amounts of money at, it seems.

As long as that’s going to be the case, the Dow Jones 30 will be part of that equation. The 45,000 level above is a target, and it might be difficult to break above, but there is nothing on this chart that tells me that we couldn’t at least make an attempt to get back there. If we were to break down, then the 43,750 level would be an area of support that I would be paying close attention to.

S&P 500 Technical Analysis

And then finally, the S&P 500 pulled back during the previous session in overnight electronic trading. It is trying to recover a bit. We’ll have to wait and see. I believe that the 6,000 level will be a major floor after the breakout. But really at this point in time, if we rally from here, I think the market goes back towards the highs. And with the previously mentioned Santa Claus rally, I think a lot of market managers, money managers, are going to have to jump into the market and try to pad their stats before the end of the year. It happens every year almost.

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