NASDAQ, Dow Jones and S&P 500 Weekly Forecast – Week of Give Back for the US Indices

NASDAQ 100 Technical Analysis

The Nasdaq 100 has pulled back quite a bit to break down below the 21,000 level as we head into the weekend. That being said, though, we had a very explosive move to the upside during the previous week, and now I think ultimately, we’ve got a situation where traders are looking to jump in and pick up any type of value that they can.

The 20,000 level underneath is a major support level from what I see, and really at this point in time, I think what we’ve got is a situation where we are trying to work off some of the excess froth. When you look at the weekly chart, we are in a perfect 45 degree angled uptrend. So as far as I see, this is a market that could continue to go much higher.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has pulled back a bit after initially peaking near the 44,500 level during the week, but again, it’s just working off some of that froth from the previous week. The market looks as if the 41,750 level underneath will be a major flaw, and that’s assuming we get anywhere near there. And I don’t think we do. A break above the top of the candlestick for the week opens up a huge move to the 45,000 level.

S&P 500 Technical Analysis

Finally, in the S&P 500, you can see that the 6000 level has offered a certain amount of resistance as it is a large, round, psychologically significant figure. But it’s also an area where you would expect a lot of options trades to be going on. The 5700 level underneath is a support level that I believe a lot of people will be paying close attention to, and as a result, that might be your short term floor in the market.

If we can break above 6000 on a daily or better yet, even a weekly close, that could kick off the next run higher in the S&P 500. The one thing that I agree on with all of these indices is they have come through earnings season fairly well. They’ve come through the election very well, and there’s nothing on any of these charts that suggests that you should be thinking about shorting them.