NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Pull Back a Bit in Early Trading

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially did try to rally a bit in early morning trading but has pulled back a bit to show a little bit of hesitation. At this point in time, it looks very much like a market that is going to be watching the 21,000 level underneath for potential support. The 50-day EMA sits right there as well.

So, I think that’s your bottom in the market right now. I also don’t think we will get there. I think this remains a very buy on the dip type of situation and therefore, opening up the possibility of an attack on the 22,000 level. Sometime between now and the end of the year is actually not a real stretch of the imagination.

Dow Jones 30 Technical Analysis

The NASDAQ of course looks strong, but the Dow Jones 30 is a little bit different picture. The 43,500 level must be overcome for the Dow Jones 30 to start to pick up a bit of momentum. At that point, you would get rid of that wipeout candlestick on the way down, and you would also be above the 50 day EMA. So, I think that is the clue you’re looking for here. Short-term pullbacks are probably buying opportunities with the 42,000 level underneath being a bit of a floor.

S&P 500 Technical Analysis

The S&P 500 has pulled back just a little bit in the early electronic hours, but really at this point in time, I think the question is, can we break above the 6,110 level? If we can, then I think we just go much higher. Short-term pullbacks continue to find plenty of support near not only the 6,000 level, but also the 5,800 level.

We also have the 50-day EMA right in the middle of that mess, so I do think this is a situation where traders will continue to try to buy dips and take advantage of cheap contracts. The trend is very much to the upside and although liquidity might be a bit of an issue for the next week or two, it still generally leans higher.

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