Dow Jones & Nasdaq 100 Forecast: Dow Jones, Nasdaq 100 Forecasts for the Week ForwardUS equities pushed larger in the course
Dow Jones & Nasdaq 100 Forecast:
Dow Jones, Nasdaq 100 Forecasts for the Week Forward
US equities pushed larger 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 kind, 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 achieve of greater than 40%.
Supply: Bloomberg
That being stated, there are some themes nonetheless unfolding out there. Experiences of robust spending in the course of the vacation season have helped to bolster retail shares – additional aided by the prospect of a $2,000 stimulus verify supplied to many Individuals. Collectively, retail giants like Amazon, Walmart and Goal might be shorter-term beneficiaries of the exercise, and anticipated exercise, within the retail world.
Dow Jones Value 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 larger amid the continuing vacation season. Decrease quantity and tighter liquidity might give rise to elevated volatility till the market totally reawakens within the New Yr. Till then, there are few scheduled occasions which may erode the elemental backdrop. Consequently, there may be little to recommend the indices will abruptly reverse decrease, significantly with out main resistance overhead.
Really useful by Peter Hanks
Get Your Free Equities Forecast
Nasdaq 100 Value Chart: 1 – Hour Time Body (September 2020 – December 2020)
Ought to shorter-term pullbacks happen, close by help 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 | 22% | 14% | 16% |
| Weekly | 3% | 7% | 6% |
–Written by Peter Hanks, Strategist for DailyFX.com
Contact and observe Peter on Twitter @PeterHanksFX