NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Show Strength in Premarket Trading

Nasdaq 100 Technical Analysis

The Nasdaq 100 rallied a bit in the early hours on Tuesday in pre-market trading as it looks like the 50 day EMA is going to continue to offer support. It’s also worth noting that the 21,000 level has offered support. So, there’s a lot of things going on here. And therefore, it does make a certain amount of sense that we would have a little bit of a bounce in what had been a small pullback in a longer term uptrend.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is also trying to rally, which is a good sign because quite frankly, the Dow Jones 30 has been the laggard of the three indices that I follow here at FX Empire. The Dow Jones 30 at one point over the last couple of weeks testing the 42,000 level looks like we are trying to put a little bit of a basing pattern.

The clearest sign that I see of the Dow Jones 30 rallying significantly would be breaking above the 43,500 level, which by extension would also have the Dow 30 breaking above the 50-day EMA. As things stand right now, probably more of a neutral tone to this market than anything else.

S&P 500 Technical Analysis

The S&P 500 has rallied as well and is even threatening the 50-day EMA in early pre-market trading. At this point, all eyes will be on the $6,000 level and whether or not the market can retake that area. If it can, then it could very well open up a fresh new all-time high in the S&P 500. Granted, the last couple of weeks have been tough, but when you look at it through the prism of the longer-term charts, it’s really not a big deal.

It’s just the market that is grinding back and forth, perhaps trying to take some of the froth out of the market. Furthermore, Jerome Powell and his flub at the FOMC press conference, that is, caused chaos. And I think at this point in time, the market is starting to forget that, and we are reestablishing the overall uptrend, but the liquidity issues in the holiday season, of course, come into play also. I do think that the buyers are returning.

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