NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Volatile but Positive

NASDAQ 100 Technical Analysis

The Nasdaq 100 has been pretty wild in early electronic trading, but that’s not a huge surprise, considering that overnight Donald Trump announced that the 25% tariffs on both Canada and Mexico could begin on February 1st. That, of course, had the machines selling everything in sight, like a nuclear bomb had just hit. And then, once the humans got involved, they started stabilizing their positions, and we continued the breakout.

I think that will be the story here, that you will hear a lot of movement based on random comments and then at the end of the day, you will see these markets continue to rally overall. The NASDAQ 100, I believe at this point in time, is primed to go looking to the 22,000 level.

Dow Jones 30 Technical Analysis

The Dow Jones 30 initially pulled back just a bit during the trading session but found enough support to turn things back around once things stabilized and now we are well above the 43,500 level, and I think we are primed to go to the highs here again.

I don’t have any interest in trying to short this market and the 50 day EMA sitting below it should continue to offer support as well. Quite frankly, this is the worst performing of the three major indices that I follow here and therefore I think it’s got some catch up to do.

S&P 500 Technical Analysis

The S&P 500 fell down to the previous downtrend line bounced again and now it looks like it’s ready to go higher based on the quick thinking of human traders who got rid of their algorithms in the middle of the night. All things being equal, this is a market that I think will try to reach the recent highs near 6,107 and then continue to go higher. Again, I have no interest whatsoever in shorting any of these indices as they all look very stout.

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