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

NASDAQ 100 Technical Analysis

The NASDAQ 100 was pretty quiet in the early hours on Wednesday, as you would expect, mainly due to the fact that the FOMC is later. So of course, people don’t really want to get overexposed before what will be a very volatile session. That being said, I do think we’ve got a scenario where if we do pull back, then we get the opportunity to start buying at lower levels.

I’d be particularly interested in 21,000 but I don’t think we even get that far. Maybe a couple of hundred points might be the opportunity we are looking for. On the other hand, we could just shoot straight up in the air. We just don’t know. Either way, I am a buyer of the NASDAQ 100 and not interested in shorting.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has rallied ever so slightly overnight as we are hanging around the 50 day EMA. The 43,750 level above is a significant barrier, but if we were to break above there, then it’s possible that we could go look into the 45,000 level. Even if we do drop from here, I think you’ve got a situation where there’s plenty of support below all the way down to at least 41,750. With this, I am a buyer and not a seller.

S&P 500 Technical Analysis

The S&P 500 has gone sideways for about five or six sessions now, and I think today might end up being the day that we’re waiting for. If we pull back from here, the 6,000 level could be a fairly significant area of interest as it is a large round psychologically significant figure and an area where a lot of people had seen pressure previously.

If we break down below there, then we’ve got the 50 day EMA and the uptrend line both coming into the picture. I do think this is a buy on the dip situation, but I also think we may have worked off the froth to begin with. Any weakness in the index, I think, ends up offering an opportunity that people will be more than willing to take advantage of. But I would also point out that Wednesday of next week is Christmas and therefore, once we get through the next day or two, it’s probably going to be very difficult trading.

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