NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Down Hard Overnight

NASDAQ 100 Technical Analysis

The Nasdaq 100 crashed overnight pretty hard as DeepSeek released a bunch of presser type of information over the weekend, suggesting that they can do everything AI related for a lot less than the major companies that have been players. This has been seen in Nvidia on Friday when somebody clearly had the information ahead of time and Nvidia started selling off.

So now we’re seeing the NASDAQ 100 plunge, but it also is showing signs of life. As we get closer to New York, so it’ll be interesting to see how this plays out. This could be a big head fake, so pay close attention. But if we get significantly above the 21,000 level, that could be a sign to start buying. We just don’t know yet. But clearly there is a lot of volatility coming.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has fallen pretty hard but has also turned around to show signs of life. So interestingly enough, we may see a bounce here as well. Regardless, most of this was probably needed anyway, to be honest. So, we’ll see if this ends up being a value play for the Dow Jones 30, as it has obviously had a very strong index over the last couple of weeks.

S&P 500 Technical Analysis

The S&P 500 has gotten hammered as well, but that makes sense that it would struggle more than the Dow Jones because there are more tech companies involved, obviously. We tested the 50 day EMA but have turned around to show signs of life again. This suggests to me that we are in fact seeing a technical pullback, and if we can get back above the 6,000 level, we could see the S&P 500 really take off to the upside. We’ll just have to wait and see.

I don’t know that I would short the market quite yet. A lot of what you’re seeing here is thin overnight trading. So, Europe has somewhat of a say, but not really. This is an American story. So, at this point in time, I suspect you probably find value sooner rather than later here.

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