NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Continues to Look for Higher Levels

NASDAQ 100 Technical Analysis

The NASDAQ 100 has been very quiet overnight in electronic trading as we continue to hang around the 21,000 level. The 21,000 level continues to be massive in its implication and I do think that the area between 21,000 and 21,200 continues to be a significant barrier. Short-term pullbacks should continue to be attractive for traders as we are clearly in an uptrend and of course we have the so-called Santa Claus rally coming later this month. The 50-day EMA is down near the 20,400 level and rising and I believe will be dynamic support.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues to sit just below the crucial 45,000 level. And if we can break above there, I think it opens up quite a bit of FOMO, if you will. It does look like short-term pullbacks are going to end up buying opportunities all the way down to at least the 43,750 level. Keep in mind that we get a lot of information this week, so it could be noisy with PMI manufacturing and service numbers both coming out, as well as the weekly jobless claims and of course the employment numbers at the end of the week. So this should be a very choppy week in general.

S&P 500 Technical Analysis

The S&P 500 has broken above the 6,000 level finally and it now looks like it’s ready to go higher. This chart is the main reason why I think most of the indices will take off before it’s all said and done. Again, a short-term pullback should be buying opportunities in what has been a very strong uptrend in the US indices. Again, the Santa Claus rally will happen sooner or later, probably in about two weeks, when money managers do everything, they can to make sure to be able to show their clients that they have all of the stocks that everybody else is talking about.

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