NASDAQ 100, Dow Jones 30 and S&P 500 Forecast – US Indices Attempt to Bottom

NASDAQ 100 Technical Analysis

The Nasdaq 100 has rallied just a bit during the early hours on Wednesday as we continue to try to bounce a bit. All things being equal, this is a market that continues to see the 21,000 level underneath as a major support level. And therefore, I think you need to look at that as a bit of a marker for the market itself. All things being equal, this is a market that I think we’ll eventually try to get to the 50 day EMA, which is closer to the 21,500 level.

If we can break above there, then we could go much higher, perhaps to the $22,000 level yet again. When you look at the longer-term trajectory of the chart, it is very bullish, but right now we’re in this period of consolidation, which does make a certain amount of sense as we are in the middle of earnings week, and of course we also have been so bullish for so long, sometimes you just have to work off some of the excess froth.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks very quiet in early trading on Wednesday as we are just underneath the 50 day EMA here as well, with the 43,500 level underneath it being significant support. At this point, if we can break above that 50 day EMA, then the market is likely to continue going higher, perhaps to the 44,500 level. All things being equal, this is a market that I am still a buyer of dips, and I don’t have any interest in shorting it as it has been so strong over the longer term.

S&P 500 Technical Analysis

And in the S&P 500, the hammer that was formed during the Tuesday session might be the first signs of the market trying to recover, and the Wednesday session looks like it’s more of the same. The catch, of course, is we have an inverted hammer from the Monday session, which shows a lot of confusion, so I am still cautious about the S&P 500, although I certainly favor the upside.

The 6000 level, of course, is a large, round, psychologically significant figure that comes into play right along with this 50-day EMA. All things being equal, though, I’d be a buyer, not a seller, of S&P 500, understanding that the earnings season is going to continue to cause a lot of noise.

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