NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Continues to Rally on Wednesday

NASDAQ 100 Technical Analysis

The NASDAQ 100 has shown itself to be fairly positive in the early hours on Wednesday as the uptrend continues. The sell-off from last week seems to be being shrug off at the moment and therefore, I think that you will see that the NASDAQ 100 will go looking towards the 21,000 level. This does make a certain amount of sense considering we had a real lack of economic news on the calendar. And while we’re in the middle of earnings season, certain companies, for example, Tesla can have a pretty big, outsized reach on the index. And that might be part of what we’re seeing here as well.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks fairly positive after forming a hammer during the previous session. So, this looks like a pullback and buy on the dip type of opportunity from everything I see here. With that being the case, I would anticipate that the Dow Jones 30 goes looking to take out the 43,750 level above and then start reaching towards the 44,500 level after that. That was the recent all-time high, so it makes a certain amount of sense that we would look to that as a potential target. Underneath current trading, we do have the 50 day EMA, not too far below, and that could offer a little bit of technical support.

S&P 500 Technical Analysis

The S&P 500, which was the best looking index going into the session on Tuesday, remains so as we have a very bullish, although not necessarily massive candlestick in the early hours of Wednesday. It does look like we are going to make another move to try to get to the 6000 level. If we can break above that, it would obviously be a very bullish sign, and it could kick off the next leg higher, and perhaps even a bit of FOMO trading.

The 50-day EMA currently resides around the $5,800 level and is rising, so I do think there is plenty of technical support about 100 points below where we are right now anyway. So, with this, I remain bullish and more of a buy on the dip trader in the S&P 500 as well.

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