The premarket trading on Thursday has seen a lot of noisy short-term trading, but it looks as if the market is likely to try to recover.
The Nasdaq 100 has been fairly noisy during the early hours on Thursday, but much like Wednesday, it looks like we are trying to do everything we can to bounce. The 21,000 level below should continue to be support and now that we have gotten the Nvidia earnings call out of the way, it does suggest that we probably bounce from here. The 50 day EMA of course will offer a bit of resistance, but breaking above that opens up the possibility of a move back to the 22,000 level.
The Dow Jones 30 looks less enthusiastic. We are simply bouncing along the bottom of this short term trading range that we have been in near. This is an index that is going to continue to perhaps drift sideways, maybe a little bit lower as the rest of the market blows by it. We see this from time to time, but it’s not necessarily enough to get you to start shorting the Dow Jones 30 anytime soon.
I think eventually it will try to bounce. But the 50 day EMA so far has offered a ceiling in the last week or so. And until we break above there, I’m not entirely convinced about buying Dow Jones 30.
The S&P 500 is a little bit noisy during the trading session here on Thursday in the early hours, but it does look like we are trying to build up the necessary momentum to rally. And if we can break above the 50 day EMA, which is essentially the Wednesday high, I think that opens up the S&P 500 for a much more bullish move to the upside a bullish continuation, if you will, all the way up to the 6125 level. On a breakdown from here, the area around 5900 has offered support over the last couple of weeks, so I would watch that area in case there is some type of bounce.
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Christopher Lewis is an experienced trader that specializes in technical analysis and markets prediction. Chris has over 20 years of experience across a wide variety of markets and assets - currencies, indices, and commodities.