NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Look to Pull Back

NASDAQ 100 Technical Analysis

The Nasdaq 100 pulled back just a little bit during the early hours of Thursday as the market had gotten a little overdone. So, it’s not a huge surprise and quite frankly, I don’t think it changes much. I think this is a situation where people are doing what they can to find value and therefore, a pullback probably has people looking for some type of bounce to occur sooner or later.

But frankly, I am a buyer of dips. I have no interest in shorting this market. However, if we were to just turn around and break above $22,000, that would have to be a sign to get long again as well.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is a little bit negative in overnight trading, but really at this point, the Dow is probably the most stretched of the three and it is starting to test the previous uptrend line for resistance. So, I think a pullback here makes a significant amount of sense and therefore a pull back to the 43,500 level, I believe is very likely. On the other hand, though, if we do continue higher, we just continue higher. There isn’t too much to do other than to get long of this market in that environment. I would like to find some value on a dip though.

S&P 500 Technical Analysis

The S&P 500 is sitting right at all-time highs, and at this point, a short-term pullback I think also invites more buying pressure, especially if we can get back down to the $6,000 level. The S&P 500 has been going sideways for a while, after a nice, fairly steady uptrend for most of the last year and a half. So, a little bit of pullback here and there to build value makes quite a bit of sense here as well.

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