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

Dow Jones 30 Technical Analysis

The Dow Jones 30 is approaching the 50-day EMA, which, of course, is an indicator that’s fairly reliable, but underneath there, we have the 48,000 level. That scenario where I would expect the buyers to come in and try to support the market, so we’ll have to wait and see how that plays out.

All things being equal, despite the fact that we’ve sold off pretty significantly over the last 3 days, when you look at the totality of the chart and the trend, not much has changed. I still feel that way and I am looking to take advantage of cheap contracts in the Dow Jones 30 if and when I get that opportunity.

S&P 500 Technical Analysis

The S&P 500 rallied a bit during the early hours as well, but now finds itself hanging around the 6,800 level. This is an area that I think will offer support and I think there are a couple of areas just below extending all the way down to the 6,500 level that offer plenty of support.

Again, I think this is a situation where if you are patient enough, you’ll be rewarded with cheap stock, but ultimately you don’t have to be the first person to get involved in the recovery. Let the market bounce a bit and then try to get involved. That’s exactly how I’ve been playing it for months and it’s worked out quite well for me. I have no interest in shorting any of these indices.

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