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

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially tried to rally during the trading week only to turn around and show signs of weakness. We have tested the crucial 20,000 level, which of course has a lot of psychology attached to it and is an area that’s been somewhat supported for a while. At this juncture, I think that the 21,000 level above still offers significant resistance and you could even make an argument for a little bit of a double top, but really, I think what we’ve got here is a situation where traders are just simply a little bit tentative ahead of the US election.

And of course, maybe a little bit exhausted. We are starting to head towards the Santa Claus rally, although we’re probably three or four weeks away from it. So sooner or later, traders will probably try to look for some type of value.

Dow Jones 30 Technical Analysis

The Dow Jones 30 initially fell during the week but has recovered enough to at least show signs of life. And in fact, if the markets close the way they look at the moment, we will have formed a hammer. What this tells me isn’t necessarily that we’re going to become overly bullish. I think it’s more along the lines of, we are going to go sideways.

That does make a certain amount of sense as we hold our breath and wait to see who wins the US elections. But furthermore, it’s a market that got a little ahead of itself. So, with all of that being said, I think it makes a certain amount of sense that market participants continue to look at this as a buy on the dip market, as the Federal Reserve could very well cut 25 basis points at the next meeting, at least according to what the market might think.

S&P 500 Technical Analysis

The S&P 500 fell during the week, but it has gotten itself back up off the floor. So, I think you’ve got a situation where traders will continue to look at dips as buying opportunities here as well. As the S&P 500 of course is one of the first places people put money to work. The 5,650 level is offering support at the moment, just as the 5,900 level is offering significant resistance.

It is worth noting that on Friday we did see a bit of a recovery, despite the fact that the jobs number was so horrible. That being said, it’s probably worth noting that the jobs number was highly skewed due to the hurricanes in the United States. So perhaps the market is just simply ignoring that. I remain bullish, but I recognize the chances for volatility are pretty high at this point.

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