Dow Jones, Nasdaq 100, S&P 500 Forecasts for Next Week
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Indices Technical Forecast: Bullish
- S&P 500 grinding higher in record territory
- Dow Jones has a top-side trend-line to watch
- Nasdaq 100 trading around prior record high
S&P 500 Technical Forecast
The S&P 500 is grinding its way higher, which is often times the case once in record territory. In the absence of any major news and selling, the market tends to have a way of ‘floating’ higher. For now, we will continue to respect the upward trend.
What could make for a continuation-style set-up, is if we see a short-term period of sidesways trading that provides a base to enter longs with levels to use for assessing risk. This could happen on top of the August record high at 4545, and if it does we will be able to use that as a backstop.
For existing longs, staying the course for now looks like the prudent move, while would-be longs may be best served waiting for the above outlined scenario. Shorts hold no appeal at this time.
S&P 500 Daily Chart
Dow Jones Technical Forecast
The Dow Jones looks very similar to the S&P 500, of course, and on that the same outlook applies. There is a top-side trend-line running over from the May high that may create a small bump in the road. But given it is running in the direction of the trend it isn’t viewed as significant.
Dow Jones Daily Chart
Nasdaq 100 Technical Forecast
The Nasdaq 100 is trading around the record the August high and while it looks like it could keep on trading higher, risk/reward at the immediate moment for fresh longs isn’t appealing. For existing longs, staying the course appears a prudent play for now, with the next notable line of resistance coming via the top-side channel dating to September of last year. It currently lies around 16250.
Nasdaq 100 Daily Chart
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.