NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Wait for Fed

NASDAQ 100 Technical Analysis

The Nasdaq 100 pulled back just a bit during the early hours on Tuesday as we continue to see a pretty significant uptrend overall in this market though. We are sitting just above the 22,000 level, and that’s an area that could cause a little bit of support, but I think there’s probably more support near the 21,750 region.

A pullback should attract value hunters, but we will have to wait and see, as the market is typically fairly bullish this time of year, with money managers chasing any type of return they can get in order to show their clients something. Keep in mind that we do have a Federal Reserve meeting on Wednesday, which will have a major influence on everything.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks miserable. It’s currently sitting on the 50 day EMA and it has had nine consecutive negative closes on the daily chart. So, it’s probably due for a bounce. The question is whether or not it’ll actually get it. The market clearing the $43,750 level to the upside might be a good sign, but right now this is a market that, although still in a longer term uptrend, can’t seem to get out of its own way, so there’s no need to be a hero here and get involved before the market turns around.

S&P 500 Technical Analysis

The S&P 500 continues to consolidate sideways, and I think we probably have a fairly quiet S&P 500 between now and the Federal Reserve interest rate decision or perhaps, maybe even more importantly, the FOMC press conference with Jerome Powell after the statement and the decision come out. After all, most traders know and have already priced in the idea of a 25 basis point rate cut this month.

The question now becomes what happens after that because the Fed funds futures rate have the Federal Reserve sitting still in January by an 80% margin. So, with this being said, I think you’ve got more of a buy on the dip market in the S&P 500, with the 6,000 level causing the obvious psychological support, but I not really looking for it to go anywhere in the next day or two, at least not until we get Jerome Powell out of the way.

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