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

NASDAQ 100 Technical Analysis

The Nasdaq 100 rallied rather significantly during the morning hours of Friday after the jobs number came out a little bit hotter than anticipated, but really nothing that would be overly concerning. Short-term pullbacks will continue to attract a lot of value hunters and I think that given enough time, we could go as high as 22,000.

Short-term pullbacks should see plenty of support near the 21,000 level. This is a market that I think continues to be very noisy, but I also recognize that it is a highflyer. So, as traders try to take advantage of the expected Santa Claus rally, they will be buyers of equities in the US.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has gone back and forth during the course of the session on Friday, bucking the trend of the other major indices in the United States. The 45,000 level is a large round psychologically significant figure, but it’s, more importantly, an area where we have seen a lot of massive resistance.

If we can break above the 45,000 level, then I think that allows the next move higher. In general, I think short-term pullbacks continue to be bought into with the 43,750 level being a little bit of a floor, with the 50-day EMA sitting in the same area offering support in and of itself.

S&P 500 Technical Analysis

The S&P 500 continues to rally as we are now threatening the 6,100 level. I do think that a short-term pullback is probably coming sooner or later, or at the very least sideways action. However, that Santa Claus rally at the end of the year when everybody tries to pad their stats is a real thing and the S&P 500 will be one of the first places they start putting money to work.

It’s just a habit at this point. The 6,000 level should be a major support level, and I think that will continue to be a place that attracts value hunters if and when we do drop to that area. I have no interest in shorting any of these indices.

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