NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Pull Back to Start Week

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks a bit negative early on Monday but remains above the 49,000 level at least so far. An area that should be supported, as it was significant resistance previously, a bit of market memory should come into the picture here.

I like the idea of buying dips; I have no interest whatsoever in shorting this market, and I think even if we gave up 49,000, 48,000 is a large round number that has a lot of support at it, especially now that the 50-day EMA is starting to come into the picture.

S&P 500 Technical Analysis

The S&P 500 has pulled back just a touch during the pre-market trading, but again, this is just more of the same chop-chop before we try to take out the 7,000 level.

If, in fact, we can take out the 7,000 level, then I think the S&P 500 probably continues its next leg higher. The 50-day EMA and the 6,800 level underneath will offer pretty significant support, and I do think that traders continue to look at those levels as being important. Buying on the dips has been good in the S&P 500 for quite some time, and I think that will continue to be the case here.

For a look at all of today’s economic events, check out our economic calendar.