NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Continue to Watch for Santa

NASDAQ 100 Technical Analysis

The Nasdaq 100 has rallied overnight and in electronic trading it certainly looks like the foreigners are out there willing to take advantage of the situation to get involved to the upside. I think short-term pullbacks continue to be buying opportunities in what is an obvious uptrend anyway.

There is support underneath near the 21,370 level and then again at the 21,000 level, so even if we do get a pullback, it’s just going to end up being a buying opportunity. If we were to break above the 22,000 level, that would obviously be a very bullish sign as well. With nothing on the economic calendar of note on Friday, one would assume that the risk appetite leans to the upside this time of year.

Dow Jones 30 Technical Analysis

The Dow Jones 30 also looks like it’s ready to turn around. It is sitting just above significant support in the form of the 43,750 level and the 50 day EMA. We did see a little bit of positive action and now it looks like we are trying to get to the 45,000 level above, which was where we slammed into and pulled back. All things being equal I think there is a scenario where we are finding a bit of value here.

S&P 500 Technical Analysis

The S&P 500 of course has been negative over the last 24 hours but at the open I anticipate that it will follow right along with the other two indices and go looking for higher pricing. The 6,000 level underneath should be support right along with the 50 day EMA and the uptrend line.

The market could, or at least should, go looking to the 6,200 level given enough time, but we’ll have to wait and see. Either way, I don’t have any interest in shorting this market, nor do I have any interest in shorting any others in the United States. They all look very bullish at this point in time and again, we don’t really have anything to spook the markets, at least not in the next 24 hours.

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