NASDAQ 100, Dow Jones 30 and S&P 500 Forecast – US Indices Slump Slightly in The Early Hours of Thursday

Nasdaq 100 Technical Analysis

The Nasdaq 100 has fallen a bit during the early hours on Thursday as we continue to dance around the 200-day EMA. What’s interesting for me is that we have formed a couple of hammers here. So, it certainly looks like somebody is trying to keep the market afloat. If we get a third hammer in a row, that for me is one of my favorite bullish signals.

If we can break above the top of the hammers from the last couple of days, that for me is also a very bullish signal. In that environment, I think we almost certainly run to the 21,000 level. A break above there then opens up the possibility of going back towards the highs. However, if we turn around and fall from here, we need to be very cautious and pay close attention to the 20,000 level. Anything below 20,000 would be rather dire, and at that point you’d be looking at an even deeper correction coming.

Dow Jones 30 Technical Analysis

In the Dow Jones 30 it’s a very similar situation in so much as we are drifting lower during the early hours. And now it looks like we are trying to figure out what we want to do next, with the 200-day EMA underneath offering support near the 42,000 level. With the market, you know being the way it is as of late, you do have to be cautious with your position sizing.

But I also recognize that we are at the bottom of what could end up being a massive consolidation area that is working off some of the excess froth from the run higher. We are close to the bottom of it. So, one would have to assume a bounce is more likely than not.

S&P 500 Technical Analysis

The S&P 500 is testing the 200 day EMA again, and it is acting very much like the NASDAQ 100. So I think we’re in a very similar situation. If we can break above the hammer from the last two sessions, then we could really take off to the upside, perhaps running all the way to 6,000.

It is also worth noting that the 200 day EMA underneath continues to offer support right around the 5725 level. Of course, you have all of the usual nonsense, worrying about tariffs, et cetera, which like a drama queen, the market tends to overreact to everything, and in this environment, it most certainly is.

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