NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Rally After CPI Misses

NASDAQ 100 Technical Analysis

The Nasdaq 100 rallied pretty significantly during the early hours of Wednesday and now that the CPI number month over month came out at 0.2 instead of 0.3, we have seen markets celebrate and start running into risk assets. The NASDAQ 100 is now above the 50 day EMA and it is above the 21,000 level. These are both good signs and if we can get a little bit of follow through here, then I think you will see the markets rise towards the recent highs.

I don’t really have any interest in shorting the NASDAQ 100 anyway. But this might be the catalyst. We’ll just have to wait and see. We are certainly in an area where we are stalling a bit in pre-market, but I do think that you probably will see a bit of follow through here.

Dow Jones 30 Technical Analysis

The Dow Jones 30 did rally just as well. It’s above the 50 day EMA, and now it looks like it’s going to challenge this 43,500 level. If it can break above there, then the market is likely to go looking to the 45,000 level above, which was the recent all-time high. This was a pretty rough month for the Dow Jones 30, but as you can see, things are turning around quite rapidly, and I think we remain more or less a buy on the dip type of market.

S&P 500 Technical Analysis

The S&P 500 has reached the 50 day EMA as the opening bell approaches and I think at this point in time, it’s likely that we could go looking to the 6,000 level. Breaking above the 6,000 level opens up the possibility of a move to the 6,100 level. Short-term pullbacks, I think, will continue to be buying opportunities that you have to take advantage of with the $5,800 level underneath being a bit of a floor in the market.

With inflation shrinking, then that has Wall Street excited for the short term. This might just be the excuse they need to start buying. It’s hard to tell. With that being said, I think you’ve got a scenario where you continue to buy the dip in the S&P 500 as well, and the uptrend should continue to show itself play out.

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