NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Continues to Grind

NASDAQ 100 Technical Analysis

The NASDAQ 100 has been somewhat sideways during the early hours on Friday as we hang around the 21,000 level, the 50 day EMA is right here as well. So, I think it gives you a little bit of an idea of stability. And now the question is, can we overtake the rather erratic candlestick during the Thursday session.

If we can, then that’s a good sign. We’ll probably head back into consolidation between 21,000 and 22,000 above. If we break down below the lows of the Thursday candlestick, then it’s very possible that the NASDAQ 100 will have to set up again closer to 20,000 to attract buyers, and quite frankly, that’s not necessarily the worst case scenario. It would of course offer value.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has been somewhat sideways as well with a little bit of positivity, but much like the NASDAQ 100, I think we’re in the process of trying to assess all of that noise from Thursday. Again, I think if we can take out the top of the Thursday candlestick, it is a bullish sign, but in the Dow Jones 30, you also have to worry about the 50-day EMA. If we can clear that, then it’s likely that the market will go higher. The 41,750 level below continues to offer significant support. And despite the fact that the Dow Jones 30 has underperformed the other indices as of late, longer term, it still looks like it’s in an uptrend.

S&P 500 Technical Analysis

The S&P 500 is more of the same, just hanging around, doing very little. And I think that’s going to be the theme for the next couple of trading sessions because Monday will be the first real full week in the markets. But more importantly, you also have to keep in mind that Monday is the beginning of non-farm payroll week. So, there might be a couple of back and forth days and then more clarity once we get to that Friday session. As things stand right now, the 5800 level looks to be pretty significant support, so I would keep an eye on that. As long as we stay above there, we’re probably consolidating more than anything else.

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