NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Somewhat Sideways on Monday

NASDAQ 100 Technical Analysis

The NASDAQ 100 initially did try to rally a bit during the overnight hours on Monday, but it looks like we just don’t have enough momentum to continue going higher. It is worth noting that Oracle is doing an earnings call on Monday. So that might be a bit of a mover later, but really at this point, I think this is a market that will remain buy on the dip. Keep in mind that the United States releases CPI and PPI numbers this week. So, all focus will probably be on inflation. Again, though, I do think that in this case, short-term pullbacks are to be bought into.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks very much the same, somewhere near the 43,750 level I’d expect to see a lot of support, and that’s assuming that we even get there. As things stand right now, I think you’ve got a situation where the market is just banging up against that 45,000 level and can’t break above it. But even when it does, market participants will more likely than not suffer a little bit of FOMO and start chasing. I think at that point, we start to break higher. In the meantime, we’re probably just churning and trying to work off some of that excess froth.

S&P 500 Technical Analysis

The S&P 500 continues to hang around all-time highs as it’s now flirting with $6,100. Anything above there, of course, is bullish. I think a pullback here probably makes some sense as well. 6,000 should be supported at this juncture. I have no interest in shorting the S&P 500, nor do I have any interest in shorting any of the other indices. At this point, the United States is by far the biggest game in town for most international investors, which is why you see both the indices and the U.S. dollar rising at the same time.

This might not even be a story about strength in America, it might just be a story about how things aren’t that bad in comparison to places like France, for example. So, with that being said, I am a buyer of dips in the S&P 500 right along with other indices and have absolutely no interest in trying to short any of them.

Remember, this time of year also brings in the Santa Claus rally where people do everything they can to pad their stats who have underperformed for the year, and everybody who has performed for the year knows that this is going to happen, so they start buying a few things here and there as well. It doesn’t mean that we have to go higher, it just means that typically December does see that push.

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