NASDAQ Index, SP 500 and Dow Jones Forecasts – US Indices Drop Early on Thursday

Dow Jones 30 Technical Analysis

In the Dow Jones 30, it looks like we are going to continue to see a lot of problems. The 43,000 level has offered a massive resistance barrier. And I do think that we will probably pull back a bit, but I also think this is more likely than not going to be a good sign. If we can break above the shooting star, from the once hopeful looking Wednesday session, then it opens up a move to 43,500. The 50 day EMA is approaching the 42,000 level and rising. So, I think that could be your short-term course. I’m looking for a drop here and a V pattern to start trading once momentum goes to the upside.

S&P 500 Technical Analysis

The S&P 500 looks as if it is going to try to break down a bit as well, as we are right around the 6,000 level. And I think ultimately you have to look at this as a situation that I do believe is going to offer a buying opportunity fairly soon, but it’s a little early to get overly aggressive here. I think the best thing you can probably do is just let the market pull back, perhaps bounce and form a little bit of a V-shaped pattern that you can trade off of.

The 5,800 level below, I believe, is going to end up being on the longer-term floor if we do break down. The S&P 500 sees the 6,130 level above as a major barrier to overcome. If we can break above there, then obviously we can kick off the next layer higher, but really at this point, I think most of the indices just look a little bit stretched.

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