NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Continue to Look for Buyers

NASDAQ 100 Technical Analysis

The NASDAQ 100 has gone sideways a bit during the early hours on Tuesday, but really at this point in time, I think we’re about halfway between what could end up being a major area of consolidation between $20,000 on the bottom and $21,000 on the top.

The market is obviously in an uptrend from a longer-term standpoint, so I don’t really have any interest in trying to short the market and it is probably worth noting that the 50-day EMA sits just below current trading, so I’m actually looking for short-term pullbacks that end up being buying opportunities.

Dow Jones 30 Technical Analysis

The Dow Jones 30 fell during the early hours on Tuesday as we head to the New York Session. We’re down about 46 basis points. Ultimately, this is a market that I do think will continue to outperform the other ones, but I also recognize that it did shoot straight up in the air at one point.

So now we’re trying to find our footing. We’re not quite to the 50% Fibonacci retracement level of the surge higher from the post-election trading. So, I think we may have a little bit further to go, but eventually I would fully anticipate buyers to come back into the Dow 30 and push it to the upside.

S&P 500 Technical Analysis

The S&P 500 is positive during the early hours on Tuesday with a gain of 39 basis points, but ultimately, it’s at about halfway between the bottom and the top of the latest surge. So perhaps it’s just simply traders trying to get on board with the most recent surge to the upside. The 50 day EMA sits right around the 5,778 level and is rising. So, it is getting within about 25 points of current trading, and it should offer a certain amount of support.

If the S&P 500 can finally break above the 6,000 level and stay above there, that could be a sign that U.S. indices are all going to be going higher very shortly. I have no interest whatsoever in shorting the S&P 500 or any of the other U.S. indices as they all look to be very stout at the moment despite the fact that we’ve had a little bit of a pullback over the last couple of days.

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