Nasdaq 100, Dow Jones, S&P 500 Forecasts for the Week Forward

Nasdaq 100, Dow Jones, S&P 500 Worth Outlook:

Nasdaq 100, Dow Jones, S&P 500 Forecasts for the Week Forward

Rising yields proceed to strain fairness markets however the Dow Jones stays inside attain of report ranges, because the Nasdaq 100 stumbles into correction territory. Because the Nasdaq’s intraday report was tagged on February 16 to the intraday low on March 5, the tech-heavy index shed greater than 12% earlier than paring some losses. In the identical span, the S&P 500 had declined lower than 6% with the Dow Jones off lower than 5% at its trough earlier than surging to a brand new report excessive Monday. The diverging performances spotlight the continuing reflation commerce.

US Indices Worth Chart: 4 – Time Body (January 2021 – March 2021)

That mentioned, rising yields are largely based on expectations of a powerful financial restoration, offering an encouraging backdrop for company earnings within the months forward. Suffice it to say, present turbulence might give rise to better energy down the road because it serves as wholesome consolidation for the white-hot expertise shares that dragged the broader US indices greater since March 2020.

Nasdaq 100 Worth Outlook

Within the meantime, nevertheless, the Nasdaq 100 continues to bleed decrease. Losses have seen the index breach numerous ranges of technical help with its September excessive, round 12,466, serving as the newest casualty.

Nasdaq 100 Worth Chart: Every day Time Body (March 2020 – March 2021)

With vital breakdowns occurring, additional help is likely to be required earlier than the Nasdaq can regain its footing and proceed greater constantly. With that in thoughts, it may be argued the 200-day shifting common round 12,000 is the following main stage with rout-stopping potential.

Nasdaq 100 Worth Chart: 4 – Hour Time Body (October 2020 – March 2021)

Merchants can look to method a technically weakened Nasdaq and a stronger Dow Jones by bullish publicity to the Dow Jones and simultaneous bearish publicity to the Nasdaq 100. Such positioning could be effectively suited if the rotation pattern continues however shouldn’t be with out appreciable threat. Additional nonetheless, the percentages of revenue and loss are evenly balanced in buying and selling. Within the meantime, comply with @PeterHanksFX on Twitter for updates and evaluation.

Dow Jones Worth Outlook

Within the case of the Dow Jones, merchants ought to eye confluent help from 31,130 to 30,800 as a breach beneath the zone may give solution to additional losses. If weak point spreads past expertise shares it may recommend the basic backdrop has been altered and threat urge for food may pullback extra broadly in consequence. That mentioned, there’s little to recommend such a rotation will happen because it stays unlikely the Federal Reserve will take into account elevating charges anytime quickly and financial projections climb.

Dow Jones Worth Chart: Every day Time Body (January 2020 – March 2021)

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and comply with Peter on Twitter @PeterHanksFX