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

NASDAQ 100 Technical Analysis

The NASDAQ 100 has recovered quite a bit in pre-market trading as we are trying to bounce back from the vicious sell-off from the previous session. At this point, it does look like the 21,000 level is going to end up being a significant support level with the 50 day EMA sitting right there as well.

I think ultimately, we have a situation where we probably continue to go higher and eventually get back towards the 22,000 level. I don’t know if we get it before Christmas, we’ll just have to wait and see, but it’s clear that market participants are more than willing to pick up what we had previously seen sold off so drastically. So, I do think that we will go higher.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks very much the same, with the 42,200 level being support, and now I think we go looking towards the 50 day EMA eventually. It won’t be an easy rip higher, but I do think that this has offered enough value that you’re starting to see people dip their toes in the water. The question is, will this become a trend line? We’ll just have to wait and see. But the Dow Jones 30 certainly is the laggard at the moment. So, one would assume sooner or later it’ll have to play catch up.

S&P 500 Technical Analysis

The S&P 500 is looking fairly robust first thing in the morning before the market has actually opened. It’s up about 7 tenths of a percent, and now it looks like we are going to do the hard work of recapturing some of that massive sell off. I do think that this has offered enough value that people will be interested. If we were to fall though, the 5800 level is your next support level.

I don’t like the idea of shorting indices and quite frankly, I think there’s a lot of machine work that happened yesterday that crushed the markets. Because traders are probably thinking through this and going to the conclusion that the US economy is strong that’s not really a bad thing despite the fact that rates may stay a little higher for longer so as it is, it looks to me like a market that is trying to get people to jump in and start buying again.

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