NASDAQ 100, Dow Jones 30 and S&P 500 Forecast – US Indices Wait for FOMC

Dow Jones 30 Technical Analysis

The Dow Jones 30 has risen during the early hours, as well as threatening the 50-day EMA. If we can break higher, then the market is more likely than not going to go looking at the 200 day EMA, followed by the 40,000 level. This is a “buy on the dip” set up just waiting to happen at this point in time.

S&P 500 Technical Analysis

The S&P 500 has of course bounced a bit from the 50 day EMA and the crucial 5,600 level in reaction to those talks being announced. At this point in time, the market is going to be waiting to see what Jerome Powell has to say probably in the press conference because no interest rate decision is expected, at least no change. So, with this, I think we are approaching an area that is going to be difficult to get above.

But if we were to somehow break above 5,800, and that’s not something that I would anticipate happening during the Wednesday session, that gives the “all clear”, all-time highs. I don’t think we’re there yet for the momentum, but Jerome Powell may hint that there are interest rates coming in. If that’s the case, it’s very possible the S&P 500 rallies. Otherwise, look for the 5,400 level underneath to be the next major support level that traders will try to hang on to.

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