NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Pull Back During Friday Morning

NASDAQ 100 Technical Analysis

The Nasdaq 100 pulled back just a bit during the early hours on Friday, as we continue to see a lot of volatility in the market, and quite frankly, I think we are in the midst of trying to work off some of that massive froth post US election. With this being said, I think you’ve got a scenario where a lot of traders will be looking at this as a buying opportunity.

Given enough time, the 20,500 level is an area where there should be a certain amount of market memory getting, the buying side of the market back in action. Especially if we can break above the 21,000 level, then I think you’ve got a situation where the Nasdaq 100 could really start to take it off to the upside. And I do expect that will happen given enough time. The 50 day EMA and the 20,000 level both offer support as well.

Dow Jones 30 Technical Analysis

The Dow Jones 30 slips a little bit in the early hours on Friday, but quite frankly, this is one of the stronger lagging indices that I follow. Despite the fact that the last couple of days have been lackluster, the market turning around and breaking above the 43,750 level would be a continuation of the overall uptrend.

I think at this point in time, there’s no real reason to think that you should be short of this market and especially this one. The earnings season has been going okay for us indices, and quite frankly, I think we are trying to rally even though we have rates that we’re climbing in the United States is also a sign of just how much people are willing to ignore.

S&P 500 Technical Analysis

The S&P 500 has pulled back from the crucial 6000 level again. But really, at this point in time, I think we are building up the necessary momentum to finally break above there. What I want to see is a daily close above there and significantly above that level in order to get going. And I think given enough time, it would kick off the next leg higher. The 50 day EMA and the 5700 level underneath both could offer a significant amount of support as we are in a long running 45 degree angle trend. It looks really good.

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