Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Drop in Early Trading (original) (raw)

The US indices continue to look a bit rattled, as we are seeing a bit of selling pressure early in pre-market trading. At this point, I am looking to see if we get some kind of opportunity here for value.

NASDAQ 100 Technical Analysis

The Nasdaq 100 fell a bit during early trading on Wednesday as we are reaching towards the 28,500 level. The 28,500 level is an area that has offered support a couple of times. And yesterday, on Tuesday, we had fallen pretty significantly to reach the 50 day EMA below there but did bounce quite drastically. At this point, it’ll be interesting to see if the buyers come back in to pick up this market. Watch the 10-year yield, if it drops that could happen.

Dow Jones 30 Technical Analysis

The Dow Jones 30 also has fallen in pre-market trading, but it is trying to turn things around. It’ll be interesting to see if we get the same action where the interest rates in America drop and the Dow Jones 30 rallies a bit. All things being equal though, this is a market that I think if it can recapture the 50,750 level, then it could go higher, perhaps to the 51,350 level.

S&P 500 Technical Analysis

The S&P 500 finds itself drifting lower as well, testing the crucial 7,300 level. That’s an area where a lot of people are going to be watching to see a lot of support with the 50-day EMA and the previous market action there. I do think the S&P 500 is going to offer an opportunity, but again, you don’t need to be the first person in the market. Trade it on the right-hand side of the V when it forms on short-term charts. A bit of patience could be the way forward in this index today.

If you’d like to know more about chart patterns and how to trade them, please visit our educational area.

Related Articles

• S&P 500 Index: Iran Threats, 4% Inflation and Chip Rout Sink Stocks
• Goldman Sachs, JP Morgan and Citibank Forecasts – US Banks Drifting Early on Wednesday
• Big Earnings, Guidance See Rambus More Than Double

About the Author

Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.