NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Mixed Early on Monday

NASDAQ 100 Technical Analysis

The NASDAQ 100 initially did try to rally a bit during the early hours on Monday, but it looks like we are going to struggle somewhat. It should be noted that Tesla is up about 7% in the pre-market and that has a lot to do with why the NASDAQ 100 is trying to go higher. That being said, we’ve been in an uptrend for some time, and I would anticipate that there is a certain amount of support in this general vicinity, especially as the 50-day EMA is currently at 20,181 and rising.

And then after that, you have the 20,000 level. So, both could come into the picture and have buyers looking for a little bit of value. Keep in mind that the momentum, despite the fact that we had a pretty big sell-off on Friday from a longer term perspective, is still very positive.

Dow Jones 30 Technical Analysis

Over in the Dow Jones 30, we’ve seen a little bit of a slip in the early hours, but again, when you look at it in context of the last shot higher, it’s really not that big of a deal. It’s more of a slow, gradual give back of the excesses. The 50-day EMA currently sits right around the $42,450 level and is rising, and then the $41,750 level is where we bounced from previously, and it should be supported. If we turn around and rally above the $43,750 level, we could see this market start to take off. At this point in time, though, I think it’s just simple digestion of extreme short-term gains.

S&P 500 Technical Analysis

The S&P 500 is the weakest of the three in the pre-market, dropping over 1%, but really at this point in time, we reached the top of the channel, we’re now roughly in the middle of it, so we have started to look for potential buying opportunities. The 50-day EMA in this market is at the 5,781 level, with the 5,700 level underneath there offering support.

Regardless, when you look at the chart, it goes from the lower left to the upper right at about a 45 degree angle. In other words, it’s a very healthy uptrend. It’s not overdone. It’s not weak. It’s just right about where you want to see it. So, I am a buyer of dips. I’m just waiting for some type of price action to get me involved here.

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