NASDAQ 100, Dow Jones 30 and S&P 500 Forecast – US Indices Look Stout Early on Thursday

NASDAQ 100 Technical Analysis

The Nasdaq 100 rallied a bit during the early hours on Thursday as we continue to push to the upside. All things being equal, this is a market that, of course, will benefit from the idea of liquidity or cheap money coming into the picture does push money out on the risk spectrum, which of course is the NASDAQ 100 in the case of the major indices. Short-term pullbacks should continue to see plenty of support. And at this point in time, I suspect that the 20,000 level is going to be a bit of a floor in the market. Whether or not we can break out to a fresh new high remains to be seen.

Dow Jones 30 Technical Analysis

The Dow Jones 30 is of course getting ready to break out to a fresh new high. It’s standing right there as the upward momentum continues. We did have a little bit of an initial pullback during the early hours, only to turn around and show signs of strength again. At this juncture, it looks very much like a buy on the dips type of situation.

And with the 50 day EMA rapidly approaching the crucial 41,900 level, that’s probably going to end up being your floor. It does make a certain amount of sense, considering that we spent two weeks testing it for support, and it held that entire time. I think at this point in time, we are eventually going to try to get to the 45,000 level, but that obviously will take some time to get there.

S&P 500 Technical Analysis

The S&P 500 is also threatening all-time highs again early in the morning, and I suspect it’s probably only a matter of time before we break above there. Over the longer term, I anticipate that the S&P 500 could go looking to the 6,000 level, and in the meantime, the 5,800 level is your short-term floor. The 50-day EMA is closer to the 5,700 level and is rising, so that’s something to keep an eye on. The S&P 500 has been very strong for some time, and we are at the top of what looks like consolidation over the last four trading sessions.

So, the question now is, will we get enough momentum in the market to push it to the upside? All things being equal though, I think anytime this market pulls back, much like the other US indices and pretty much for the same reasons, you are looking for buying opportunities. The best way to play this in my experience has always been to wait for a pullback, the subsequent bounce and start buying at that point. If you are already involved in these indices, well, at this point in time, it’s just about trade management.