NASDAQ, Dow Jones and S&P 500 Forecast – Week a Choppy One of US Indices

NASDAQ 100 Technical Analysis

The NASDAQ 100 has gone back and forth during the course of the trading week. But really, at this point in time, it shouldn’t be a huge surprise considering that Thursday was Thanksgiving in the United States and of course, Friday ends up being somewhat of a holiday anyways, at least as far as liquidity is concerned. Markets close earlier, a lot of Americans just simply don’t go back to work.

That being said, it looks like the market is trying to reach the 21,000 level and break above it. If we can break above the 21,200 level, that should unleash the next FOMO trade and send the NASDAQ 100 higher, which is something that I do expect to see given enough time.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is pressuring the 45,000 level. If we can break that, it will release this market to go higher. In that general vicinity, I would expect to see even more momentum and it does make a certain amount of sense considering that the United States is going through a bit of a renaissance of business over the next four years with government being very, very business focused.

So, I do think that the Dow Jones 30 will continue to attract a lot of inflows from foreigners and therefore, it is probably one of my favorite indices in the United States right now. Even if we do get a little bit of a pullback, the 43,750 level should be a bit of a floor.

S&P 500 Technical Analysis

The S&P 500 continues to see the $6,000 level as an area of issue. That being said, the 6,000 level being broken does open up the possibility of the index going much higher. Ultimately, I think it would open up probably a move to the 6,250 level, possibly even higher than that. And I do think that the S&P 500 will break out in the next week or two.

The so-called Santa Claus rally when traders try to make up for underperformance for the year happens and becomes a self-fulfilling prophecy as people start to chase the highflyers and the highflyers of course, being the stocks that everybody has ran up all year, make up an inordinate amount of the calculation of the S&P 500. It’s not an equal weighted index. Short-term pullbacks have plenty of support all the way down to the 5,700 level.

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