NASDAQ 100, Dow Jones 30 and S&P 500 Forecast – US Indices Suggest Higher Levels After this Week

NASDAQ 100 Technical Analysis

The NASDAQ 100 has been all over the place this past week. We initially dropped down to the 20,000 level, shot higher, pulled back, and now it looks like overall, we are retaining some of that bullish pressure, but we certainly have a lot of questions being asked of the NASDAQ 100 as it approaches the high at the $20,800 area. All things being equal, the liquidity measures taken by the Federal Reserve will probably continue to be one of the biggest factors here.

And the NASDAQ 100, of course, loves low interest rate environment because a lot of this comes down to venture capital with new and exciting technologies. Risk appetite has a big part to play in this market as well because most equity traders look at the NASDAQ 100 as the highflyer, certainly with its volatility being higher than something like say the S&P 500. With this, I am bullish on this market, but I recognize that you will get the occasional pullback.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has been the big winner, mainly due to the fact that liquidity measures are coming into play. The Federal Reserve, perhaps offering a little bit of stimulative action, could have some of the bigger blue chip companies really humming along. And then of course you get a dividend with most, if not all of the companies on the index.

So, with that being said, I think short-term pullbacks continue to be buying opportunities. And it is probably worth noting that this is an index that is a little overstretched at the moment, although certainly bullish. And I look at any pullback as an opportunity, not something to start fading or shorting or anything like that. Quite frankly, the Dow Jones 30 is really strong looking.

S&P 500 Technical Analysis

And then finally we have the S&P 500, which looks similar to the Dow Jones 30. But I would also say that it is probably more likely than not to get a little bit of a pullback as well because on the way up it has been rather choppy. The Dow Jones 30 has been a little bit more stable and steadier in its ascent than the S&P 500, but it’s also worth noting that the S&P 500 is one of the first places people put money to work in the United States.

So, it has a little bit of a push and pull effect as far as risk appetite is concerned. Longer term, I do think this is a market that’s going to go looking for the $6,000 level, and it should find it sometime this year. At one point, I thought it would be next year, but I think $6,000 is almost certainly in the cards before we hit New Year’s Day.