NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Nervous About Rates

NASDAQ 100 Technical Analysis

The Nasdaq 100 pulled back ever so slightly during the trading session on Wednesday in the early hours. That being said, it looks very likely that the market is going to continue to see plenty of buyers on dips, with the 20,000 level underneath offering plenty of support. And in fact, as long as we stay above the 20,000 level, I don’t see any reason why you would consider the NASDAQ anything but positive. To the upside, we have the 20,750 level that has offered resistance in the past, and when we break above there, that could open up the next leg higher. All things being equal, this remains buy on the dip.

Dow Jones 30 Technical Analysis

The Dow Jones 30 tried to rally in the early hours but has given back some of the gains. I do think this is a pullback that’s probably going to bring in more buyers, because quite frankly, the market got a little bit ahead of itself getting here. This pullback should entice enough people looking for value to get into the market sooner rather than later. But for myself, I will be waiting for a drop and a bounce that I can get involved in. Currently, I have the floor at the 41,900 level where the 50-day EMA currently resides.

S&P 500 Technical Analysis

Finally, we have the S&P 500 drifting a little bit lower as well. But again, we are essentially in a range. We are working off some of the froth from the move up to this level. I do think this is a market that eventually we’ll go looking to the 6,000 level. And at this point in time, the 5,750 level, I think is an area where you’re going to see a lot of support. And that assumes we even pull back that far. I don’t think we will, but if we do, I would anticipate a bit of a bounce and some value hunting there.

One of the bigger problems that the indices in the United States have had over the last several days has been interest rates are rising in the bond market. The bond market is starting to cause a little bit of havoc. However, we are in the midst of earnings season as well, so there should be plenty of earnings calls that could get the market a little bit excited. Keep in mind that we’ve been in an uptrend for quite some time, and generally speaking, as it is not an equal weighted index, the S&P 500 and the NASDAQ 100 for that matter typically both rise over time, so it’s much easier to buy a bounce than it is trying to time a top and start shorting.