Nasdaq, Dow Jones and S&P 500 Forecast – US Indices Continues to Churn

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially did try to rally during the trading session on Wednesday, but you can see we have given back some of the gains and with that I think it just shows how ridiculous the volatility is getting in it’s not dangerous volatility. It’s choppy volatility, we had a pretty strong Tuesday and then on Wednesday we are rolling over it is worth noting that we get the ADP Employment numbers during the session.

So maybe that could cause a little bit of noise but we get the true Bureau Labor Statistics employment figures on Friday and maybe that’s what we’re waiting on. And furthermore, you can make an argument that we’re close to the all-time high. So maybe there’s a little hesitation there as well.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has pulled back, but we continue to see a lot of support just above the 41,900 level. And with that being the case, I would also point out that we are awfully close to the 50-day EMA. This is a market that could benefit from the jobs number more than others, mainly due to the fact that, well, it’s 30 of the biggest companies in the United States.

So, employment obviously would have a major readthrough as to how these companies may be performing. Again, I think this is a situation where we’re just working off some of the excess. But right now, looks like we are just kind of taking a break. I certainly wouldn’t sell this chart. It is far too strong.

S&P 500 Technical Analysis

And over here I have the S&P 500, and it is slightly positive. However, it has given back quite a bit of the gains in the early hours, so we’ll have to wait and see. I think this is more of this kind of back and forth noisy behavior that continues to be part of what’s going on, but regardless, it is positive, and you cannot short this market. The 50 day EMA is closer to the 5,700 level, which of course is a large round number that a lot of people will focus on.

Above we have the 6,000 level, and that is a large round psychologically significant figure, and I think a pretty juicy target for now. Keep in mind that we are in the midst of earning season, so that is causing some noise in the stock market, but we also have the jobs number on Friday and the presidential election next Tuesday, so we may be in a bit of a holding pattern in the short term.

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