NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Continue to See Pressures from Yields

NASDAQ 100 Technical Analysis

The Nasdaq 100 drifted a little bit lower during the early hours on Wednesday as we are threatening the 21,000 level. That being said, this is an area that I do think offers a bit of support and most of this comes down to yields in the US being outrageously strong. If we see the 10 year yield drop a bit, there’s a likelihood that this turns around and goes higher. And on top of everything else, the 50 day EMA and the 21,000 level both could cause that from a technical standpoint anyway. Clearly the selling during the trading session on Tuesday was a bit over the top as investors freaked out over the 10-year yields.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has initially tried to rally in the pre-market trading but is turning around to show signs of hesitation. I still think that this one is in the midst of forming some type of bottoming pattern underneath is significant support, and it should continue to be so. It’s basically halfway between the 50 day EMA and the 200 day EMA. So, I think it holds at least for now, unless yields in America spike drastically. I believe this is a market that’s just killing time between now and the jobs number on Friday.

S&P 500 Technical Analysis

The S&P 500 is down just a touch in overnight trading. But at this point, I think we’re also in a bit of a consolidation phase here, with perhaps the 5,800 level being a bit of a floor, while the 6,000 level is a bit of a ceiling, at least in the short term.

I do think this is a market where longer term goes higher, but we’ve got some work to do as far as working off some of the excess froth. And of course, there’s a lot of concerns about those bond yields in America. If we were to break down below 5800, then we might correct down to the 200 day EMA, but as things stand right now, I think it’s a little early to worry about that.

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