NASDAQ, Dow Jones and S&P 500 Weekly Price Outlook – US Indices Continue to Power Higher

NASDAQ 100 Technical Analysis

The NASDAQ 100 rallied significantly during the week as we are now clearly above the 21,000 level and I think probably in the midst of the beginning of the so-called Santa Claus rally. We get one of those every year as traders try to pad their stats at the end of the year to look a little more impressive for their clients.

Short-term pullbacks will almost certainly be bought into going forward, and therefore, I just don’t see a situation where you want to get short of this market. The 20,000 level underneath will be the floor in the market going forward, and at this point, it might be a bit surprising if we were to drop down below there.

Dow Jones Technical Analysis

The Dow Jones 30 on the other hand is still sitting just below the crucial 45,000 level and it looks like it’s going to take something rather special to break above there. But keep in mind that the Dow Jones 30 was the index that really took off initially, so I think everybody else is just trying to catch up.

Short-term pullbacks continue to be buying opportunities over here as well, with the 43,750 level still a pretty significant support level. If we can break above the 45,000 level, then the market could go looking to the 46,000 level next. Again, I have no interest in shorting the Dow Jones 30.

S&P 500 Technical Analysis

The S&P 500 has broken free of the 6,000 level and it now finds itself challenging the 6,100 level. I think it continues to rally, and this is probably one of the first places that traders will put money to work trying to pad those stats. After all, there are 500 of the world’s largest companies sitting in this index, so it’s all about playing all the same usual suspects.

It’s not an equal weighted index, so you really only need to see 567 companies rally to get this index to rally as well. With that being the case, I think you’ve got a buy on the dip type of situation here going forward.

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