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

NASDAQ 100 Technical Analysis

The Nasdaq 100 has broken pretty significantly to the downside in early overnight electronic trading, but the question now is whether or not that continues. Quite frankly, the nonsense that Jerome Powell polled on Wednesday has really shaken the markets up. But we are still very much in an uptrend and that’s probably something that you need to keep in mind.

The 50 day EMA hangs around in the same area, but I think the real test will be, Can we break back above the 21,000 level? If we can, then the NASDAQ 100 should remain bullish, and it should keep its uptrend intact.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has also fallen, but not as much during the early hours. It’s probably worth noting that the 41,750 level is an area that is massive support and it’s also worth noting that the Dow Jones had already been falling before Powell pulled the press conference flub of his career, quite frankly. So, at this point, I do think you get to a situation where we get a bounce eventually, but let the market do it, especially as we head into the holidays before you put any money to work.

S&P 500 Technical Analysis

The S&P 500 is plunging towards the 5,800 level. This is a level that needs to be held. If it does, then that would be a good sign. Then the next question is, can we take out the 50-day EMA? If we break down below the 5,800 level, then the 5700 level followed by the 5600 level, will both be areas that people pay close attention to as they have mattered in the past.

Regardless, I think this is a situation where most of these indices are probably going to be trouble for about two weeks. It doesn’t matter if they go higher, it’s just going to be a continuation, but keep in mind the liquidity just won’t be there until we get into January once this week’s over with, and most certainly between Christmas and New Year’s Day.

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