NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Pull Back Waiting for FOMC

NASDAQ 100 Technical Analysis

The NASDAQ 100 has rallied a bit during the early hours on Thursday as now we wait to see whether or not we can break above the 21,000 level, and we also wait on the interest rate decision coming out of the Federal Reserve decision and meeting and perhaps more importantly, the press conference afterwards to give us an idea as to where we are heading. That being said, it is worth noting that the market is likely to continue to see a lot of buyers jumping in on short-term pullbacks.

And with that being said, the market is going to be paying close attention to the 20,000 level, with the 50 day EMA sitting right around that same area. In general, this is a situation where buyers continue to look at this as a major uptrend, and with the Federal Reserve likely going to be another boost because not only are they going to be cutting 25 basis points, but I suspect with the incoming new administration, interest rates will probably be coming down.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues its march higher after breaking through the crucial 43,400 level and at this point in time, it is extraordinarily bullish. Whether or not we can continue at this rate is a completely different question, of course, but really at this point in time, any pullback needs to be thought of through the prism of a buying opportunity. I would anticipate some type of knee-jerk reaction to the downside somewhere around the interest rate decision, but longer term, I don’t think the Federal Reserve is going to do much to upset the Apple cart as it were.

S&P 500 Technical Analysis

The S&P 500 has broken out to a fresh new high, and it looks like it’s trying to catch up with its friends over in the Dow Jones 30 and the Nasdaq 100 short-term pullbacks again, I think are buying opportunities with the 50-day EMA underneath near the 5,700 level as potential support. All of these are moving in the same direction as usual. Therefore, I think that tells you that Wall Street is still willing to celebrate.

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