NASDAQ, Dow Jones and S&P 500 Weekly Forecast – Week Shows Overall Continuation

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially pulled back during the week but has turned around to show signs of life again. I suspect at this point in time the real question isn’t so much as which direction should we be trading, but whether or not we will pick up those other 200 needed points to get to the 22,000 level between now and New Year’s. I really don’t see how it doesn’t happen, but I suppose it could be something that we don’t achieve.

This is a market that is right in the midst of the Santa Claus rally, and of course, we already know what most central banks are going to do, so traders can take that into account. Short-term pullbacks should continue to be bought into. It certainly was this week, and I suspect that will continue to be the trend.

Dow Jones 30 Technical Analysis

The Dow Jones 30 did have a tough week, but it looks as if on Friday it’s trying to stabilize near the 43,750 level, an area that I had pointed out previously as potential support. Friday turning around would change the attitude of this market quite a bit, but truthfully it’s not until we break down below 41,750 that I’d be remotely concerned about the trend.

It was a market that was ahead of everybody else, so it makes sense that it had to work off froth a little quicker than everybody else. It’s just a simple momentum, how many people are left to buy it kind of question. All things being equal, I do think we’re going to turn around here and head back towards the 45,000 level again, which of course was the swing high.

S&P 500 Technical Analysis

And in the S&P 500, it’s been pretty quiet over the last couple of weeks. But again, that’s not a huge surprise, we just broke above the psychologically important 6000 level so I suppose a lot of people are probably looking at that and wondering. But short term pullbacks at this point, I think, continue to be bought into and I do think that the S&P 500 rises right along with everybody else as the overall trend continues.

Remember, the Santa Claus rally is a real thing when traders try to pad their results for the year, and the S&P 500 is one of the first places they go to, so I would expect a little bit more bullish behavior before we head into the holidays.