NASDAQ, Dow Jones and S&P 500 Weekly Forecast – US Indices Show Stabilization for the Week

NASDAQ 100 Technical Analysis

The Nasdaq 100 has had a strong week as we continue to go back and forth showing signs of life. Ultimately, this is a market that continues to watch the 21,000 level with interest. And if we can break above there, it’s likely that we will just simply continue the overall uptrend.

Short-term Povacs will almost certainly have a bit of support underneath near the 20,000 level, which of course is a large round psychologically significant figure. In general, the NASDAQ 100 is doing fairly well through earning season as well. So I think we have a situation where we will take off to the upside.

Dow Jones 30 Technical Analysis

The NASDAQ looked good, but over here in the Dow Jones 30, what I find interesting is that we initially pulled back for the week only to turn around and show signs of life again. By doing so, it looks like we are pressuring the overhead resistance and it’s probably only a matter of time before we break out cleanly above the 44,000 level.

The market is a little extended, but this last couple of weeks has at least given us an opportunity to digest some of the gains after the US election, and it should probably be noted that the Dow Jones 30 will probably be one of the bigger beneficiaries from the incoming US administration.

S&P 500 Technical Analysis

The S&P 500 has been solid all week, but we still are looking to see whether or not we can actually clear the $6,000 level. There’s literally nothing on this chart that extends any type of concern as far as I’m concerned about it, and I do think it’s probably only a matter of time before we clear that barrier.

Once we do, this is a market that should continue to go much higher, and I think short-term pull bags will continue to be looked at as potential buying opportunities. Underneath we have the 5700 level offering a bit of a floor, and that of course assumes that we even get to that area. This is a very strong looking market, and I think it continues higher before it’s all said and done.

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