NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Looks Strong Heading into Holiday

NASDAQ 100 Technical Analysis

The NASDAQ 100 was somewhat choppy in the early hours of Wednesday as we continue to threaten the crucial 21,000 level. If we can break above this level, it’s very likely that the market will continue to grind higher, perhaps trying to take out the 21,200 level, which was the recent all-time high. The market continues to see buyers on dips, and I think that probably plays out going forward as well, as we have a scenario where market participants continue to look at the NASDAQ 100 through the prism of value.

Furthermore, I do believe that a lot of foreign investment is flying into the United States again, and that has a decidedly positive effect on the high-flying NASDAQ 100. Keep in mind that Thursday is Thanksgiving in the United States, and that will have a direct effect on these markets. Also, Friday will be somewhat thin as most markets will close early.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues to just take off straight up in the air and at this point, anytime you get a chance to buy a pullback, I would anticipate that a lot of people will be right there with you. It certainly looks like it’s ready to go a little bit higher in the early morning hours of Wednesday here in the United States. So, I do anticipate that there will be more momentum traders jumping in. And again, Thursday is Thanksgiving, so keep that in mind.

S&P 500 Technical Analysis

The S&P 500 is in the midst of breaking out and breaking its recent all-time highs that go higher. I do think that you’re going to see a little bit of momentum play here. Probably good for a day or two before we pull back and retest. This is a market that’s been very strong, and the fact that the earnings season has been fairly decent certainly helps the situation as well.

It’s almost like Wall Street doesn’t care about interest rates anymore as they have been stubbornly high, yet the stock markets continue to rally. I think the S&P 500 has a little bit of catching up to do with the other two, so we’ll have to wait to see whether or not the momentum really picks up here. On a pullback, there is plenty of support below at the 5,800 region where the 50-day EMA currently resides. Either way, I remain bullish.

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