NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Quiet Day After Thanksgiving

NASDAQ 100 Technical Analysis

The Nasdaq 100 is fairly flat on Friday, as you would expect, being the day after Thanksgiving. The markets just don’t have a whole lot to move on at the moment. The lack of liquidity and by extension volume, I think is probably going to be the main story. If you are not in the United States, which you may not know is that although Thanksgiving is on Thursday, most Americans, traders included, tend to take the next day off as well. That being said, this is a market that’s been bullish for some time, and I think we are going to at least try to drift towards the $21,000 level.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues to be very bullish, and it continues to stare down the barrel of the $45,000 level. If we can break above that, it would kick off the next leg higher. But again, this is going to be a situation where there’s only so much volume out there to be wrestled with. Short-term pullback should be buying opportunities, and I still see support near the 43,750 level, followed by the 50-day EMA. I think it’s probably only a matter of time before we break out above the $45,000 level, but right now, I don’t know if I would bank on it happening on Friday.

S&P 500 Technical Analysis

The S&P 500 continues to just meander around the $6,000 level. This is an area that’s been important a couple of times now, and of course is a large round, psychologically significant figure, so a lot of people would be paying close attention to it. With that being said, short-term pullbacks, I think, end up being buying opportunities, all the way down to at least the 50-day EMA, which is close to the $5,825 level. Short-term pullbacks are just as likely as a breakout. So, at this point, at least in the short term, you have to be somewhat neutral.

In the longer term scheme of things, though, this is a market that certainly looks like it could rip much higher over the next several months. And of course, we also have the so-called Santa Claus trade, which is when money managers in the month of December try to make up for underperformance by purchasing high-flying stocks, which tends to have a somewhat self-fulfilling prophecy with the index itself going higher.

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