NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Look Soft in Early Friday Trading

Dow Jones 30 Technical Analysis

The Dow Jones 30 has fallen a bit to reach toward the 47,150 level. I think at this point, 47,000 is an area where a lot of people might be interested in getting long again. If we turn around and rally, then it opens up the possibility of a move back to the 48,400 level. But we will just have to wait and see. This market could go into some consolidation above 47,000. That would not surprise me at all because the Dow Jones 30 does tend to be more sideways driven at times than the Nasdaq 100 or even the S&P 500.

S&P 500 Technical Analysis

The S&P 500 fell as well and is testing the 50-day EMA as well as an uptrend line, so that captures everybody’s attention. If we continue to break down, perhaps below the 6,650 level, then we could see a correction back down to the 6,500 level. Recapturing the 6,800 level would be a very strong sign, but I think Friday is one of those days you will probably want to stand on the sidelines and see if the market actually bothers waking up.

We do have this strong trend line that goes all the way back to early May that we are testing. It has been reliable so far, but the action over the last couple of days has been really schizophrenic, and therefore, one would have to wonder whether or not there is something bigger coming. The volume has picked up since all of this nonsense started, so it will be interesting to see whether or not we can recover. If we do, then I think it is steady as she goes, and if we do not and we continue lower, then 6,500 will be the next area I will be watching very closely.

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