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

NASDAQ 100 Technical Analysis

The NASDAQ 100 has gapped higher to kick off the trading week on Monday in what is Christmas Week, so liquidity might be a bit of an issue. It’s not really that uncommon for the NASDAQ 100 to rush to the upside heading into the holiday, as traders will chase some type of performance between now and Christmas day, and then again, now and New Year’s Day. Short-term pullback should continue to be buying opportunities on bounces, but what I’m really watching is whether or not we can break above the top of the candlestick from the previous session.

Dow Jones 30 Technical Analysis

The Dow Jones 30 did pop a little bit in the first few hours of overnight electronic trading but has pulled back just a bit to show signs of hesitation. That’s not a huge surprise because it’s been a laggard for a couple of weeks, but quite frankly, I think this will end up being a bit of a buying opportunity, with the 41,750 level underneath being support. This area has been important more than once, so I suspect the “market memory” comes into play.

S&P 500 Technical Analysis

The S&P 500 rallied a little bit after gapping higher but looks as if it’s going to be dealing with the 6000 level in the cash market. So, if we can break above the 6000 level, then the 6100 level would be targeted. Next, the 5800 level underneath will continue to be a bit of a floor. I suspect we either go sideways for the next couple of days or we finally do break that 6000 level. If that happens, we could see a strong move overall.

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