NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Drift Lower in Premarket Trading

NASDAQ 100 Technical Analysis

The NASDAQ 100 fell again during the early hours of Monday in CFD and electronic trading, as it looks like interest rates continue to be an issue for stock traders around the world. It’ll be interesting to see how this behaves though, because quite frankly, this is an area that has been noisy in the past. So, if that is in fact going to be the case, then we have to look at this through the prism of whether or not value hunters return.

Quite frankly, I would feel better if we could get above the 21,000 level, which would show real resiliency, and it would show an attempt to break back above the 50 day EMA. I have no interest in shorting the market, although I am a little bit cautious about buying it.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is sitting just below the 42,000 level and at this point in time, I think we have a situation where if we can recapture that, then it gives us a shot at recovery going to the 50-day EMA. If we break down below the little area here that we find ourselves at roughly $41,750, then we are more likely than not to go looking to test the 200-day EMA below there.

S&P 500 Technical Analysis

The S&P 500 is below the $5,800 level in the early hours, but this is an area where I think you might see a little bit of pushback. Quite frankly, if we can go positive for the day, that for me would be the signal that we’re going to head back into consolidation. I’m not necessarily bearish of this market, but I don’t want to be the first one to try to pick it up, if you get what I’m saying.

I think you need to see it prove itself by turning positive on the candlestick for the day, and then at that point, you can start to nibble at this market, which over the longer term should be okay, but the interest rate situation in America, of course, is causing a lot of headaches.

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