NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Look to Rally After Holiday

NASDAQ 100 Technical Analysis

US indices take a breather during Thanksgiving, but still look primed to go higher day during Wednesday, and overnight in the CFD market, we have seen it bounce a little bit before we shut down for Thanksgiving. All things being equal, it looks like the market is ready to try to jump above the 21,000 level, but 21,000 has been rather stubborn.

There is an area all the way to 21,200 that causes resistance. So, I think it’s going to be difficult to get above there. Short term pullbacks should continue to be potential buying opportunities and I believe that the 50 day EMA, currently near the 20,400 level, is your floor in the market at least for the time being.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has of course done nothing on Thanksgiving and on the day before we did try to rally, but we got back some of those gains. This is still a very bullish market. And quite frankly, I think it’s probably the strongest of the three major US indices. The 43,750 level is an area that could offer a little bit of support. And then after that, we could have 43,000 backed up by the 50 day EMA. The 45,000 level above is a bit of a barrier.

So, I think if we can finally break above that, then we can kick off the next leg higher. Keep in mind though, that the US markets will, of course, be somewhat illiquid on Friday, as the day after Thanksgiving does see the market close at one in the afternoon, New York time. So, a lot of Americans, quite frankly, just aren’t even trading. But even if we do get a little bit of a move, it will be short lived. This is all about next week and how things will behave on Monday. I think any short-term pullback though does offer a little bit of value.

S&P 500 Technical Analysis

The S&P 500 continues to sit right around that crucial 6,000 level but hasn’t been able to cleanly break above it. Short-term pullbacks, I think, offer buying opportunities near the 50-day EMA. And really, at this point in time, I think, if we break to the upside, once we get above 6,020 then possibly, we’ll see a little bit more momentum coming back into this market. Regardless, the S&P 500 is like the other indices. It’s something that you don’t want to short, and you have to look at pullbacks as opportunities to pick up a little bit of value.

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