Dow Jones & Nasdaq 100 Forecast: Dow Jones, Nasdaq 100 Forecasts for the Week ForwardUS equities pushed increased in the cour
Dow Jones & Nasdaq 100 Forecast:
Dow Jones, Nasdaq 100 Forecasts for the Week Forward
US equities pushed increased in the course of the quiet vacation interval with every of the Dow Jones, Nasdaq 100 and S&P 500 clocking new all-time highs to begin the week. In a return to type, the Nasdaq 100 continues to outpace the Dow Jones which has successfully put an finish to the economic rotation commerce that the market witnessed in November. Suffice it to say, the know-how sector has returned to its perch atop the record of high-flying sectors within the US inventory market because the Nasdaq 100 seems to be to shut out the yr with a acquire of greater than 40%.
That being stated, there are some themes nonetheless unfolding available in the market. Studies of sturdy spending in the course of the vacation season have helped to bolster retail shares – additional aided by the prospect of a $2,000 stimulus examine supplied to many People. Collectively, retail giants like Amazon, Walmart and Goal may very well be shorter-term beneficiaries of the exercise, and anticipated exercise, within the retail world.
Dow Jones Worth Chart: 1 – Hour Time Body (November 2020 – December 2020)
Within the shorter time period, the Dow Jones and Nasdaq 100 will look to proceed their push increased amid the continued vacation season. Decrease quantity and tighter liquidity might give rise to elevated volatility till the market totally reawakens within the New 12 months. Till then, there are few scheduled occasions which may erode the elemental backdrop. In consequence, there’s little to recommend the indices will instantly reverse decrease, significantly with out main resistance overhead.
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Nasdaq 100 Worth Chart: 1 – Hour Time Body (September 2020 – December 2020)
Ought to shorter-term pullbacks happen, close by assist is available for each the Industrial Common and the tech-heavy Nasdaq derived from prior swing-highs. Additional nonetheless, shopper sentiment information reveals retail merchants stay net-short the US indices which suggests they might proceed to climb since we usually take a contrarian view to crowd sentiment.
| Change in | Longs | Shorts | OI |
| Day by day | 15% | -7% | -2% |
| Weekly | -10% | 6% | 1% |
–Written by Peter Hanks, Strategist for DailyFX.com
Contact and comply with Peter on Twitter @PeterHanksFX