NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Recover in Premarket

Dow Jones 30 Technical Analysis

The Dow Jones 30 has broken a trendline during the trading session on Friday, but it does seem to have found support at the crucial 45,000 level. And then, of course, to open the Monday session, it has gapped higher to clear the 50 day EMA as well. So, I think at this point in time we will probably see more of a buy on the dip attitude. Unless, of course, something changes with the US-China relations. But we’ve seen both acquiescence of the US position and the Chinese position. So, I think it’s probably going to end up being a situation where this becomes nothing of importance.

S&P 500 Technical Analysis

The S&P 500 also gaps higher to kick off the trading week, to jump back into the previous consolidation area. So now you have to look at the trend line that is being formed, which coincides quite nicely with 6500. 6500, of course, is a large, round, psychologically significant figure, and it looks to me like we are going to continue to offer that as support. The 50 day EMA sits just above there, and I think that offers a nice floor in the market. At this point, the market rallying then, perhaps goes looking to the 6800 level. All things being equal, this is a market that I think continues to attract inflows as long as we don’t get a shock over the news, buyers, as we did on Friday.

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