NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Pullback Slightly in Early Friday Hours

NASDAQ 100 Technical Analysis

The NASDAQ 100 is down ever so slightly in the early hours on Friday as it looks like we are perhaps going to soften up a bit, but I wouldn’t read too much into it, other than it’s a situation where the market had shot straight up in the air during most of the week. We are still very much in a bullish trend, and I don’t see that changing anytime soon. So, with this, I think you have to look at the 50 day EMA at the 21,000 level as the floor in the market, and that of course assumes that we drop anywhere near there. I don’t think we do that.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues to struggle with the 43,400 level, which is an area that also features the 50-day EMA, but if we can break above there, that could give us the all-clear as it were to continue going higher. The Dow Jones 30 started to fall apart before the other indices, so it’s not a huge surprise to see that it may be a little bit of a laggard at this point.

I still see the 41,900 level underneath as a major support level, especially now that the 200-day EMA is reaching that barrier. If we can, of course, break above the 43,400 level, I think eventually we will go looking to the 45,000 level.

S&P 500 Technical Analysis

The S&P 500, pretty negative in the early hours, but not drastically so. It looks like the 6,000 level will more likely than not continue to offer support right along with the 50-day EMA underneath. Pullbacks, I think, will offer a bit of a bounce and that bounce, I think, will be something that will offer the opportunity to get long, perhaps trying to get to the 6100 level.

If we break the 50 day EMA to the downside, then we may have to reset down near the 5800 level. But again, this is a market that’s very much in an uptrend and really at this point the biggest problem it has might be liquidity due to the fact that we are between the two major holidays.

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