Nasdaq, Dow Jones and S&P 500 Forecast – US Stocks Wait for Elections and Fed

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially did try to rally during the early hours on Monday, but it has given back some of its gains. By doing so, it looks like we’re just simply going to hang around the 20,000 level. Having said that, what we are probably paying the most attention to will be the elections, which are on Tuesday, and then of course the Federal Reserve interest rate decision on Thursday.

So, we do have a couple of things that could really move the markets this week. The one good thing of course is we might actually get a little bit of clarity. So, by the end of the week, trading might become at least a little bit more straightforward. From a technical analysis standpoint, we are sitting on top of the 50-day EMA right at a big figure, so I would assume there is a certain amount of support just hanging around.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is currently hanging around the 42,000 level and the 50-day EMA, and much like the NASDAQ 100, it is just waiting on information. Because of this, there probably isn’t a whole lot to do in these markets beyond short-term trades, so do keep that in mind.

All things being equal though, we are in an uptrend, so I really don’t have any interest in shorting this market. And therefore, it’s more or less a matter of whether or not we do pick up some type of momentum to turn things around. Keep in mind that Tuesday evening in America will be very volatile in the electronic trading as election results come in.

So as a general rule, unless there’s a complete blowout, and the market completely loses its mind. Any massive sell-off does tend to end up being a buy-on-the-dip opportunity, but you have to be very careful with that because we’ve seen the last couple of elections, sometimes when they start selling off, they’ll sell off a couple thousand points pretty quickly. So obviously you have to be very cautious.

S&P 500 Technical Analysis

Finally, in the S&P 500, we also rallied here, and just like in the Nasdaq 100, gave back those gains. And just like in the Nasdaq 100 and the Dow Jones 30, we are sitting right at the 50 day EMA. I suppose the one difference here is that we’re not sitting at a large round, psychologically significant figure.

So, the next support level that I see underneath is what I’m focusing on and that’s 5,650. Again, this is probably a buy on the dips type of market, but we’ve got a couple of really big things to weave through this week.

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