Forecasts for Dow Week, Nasdaq 100, S&P 500

Dow Jones, Nasdaq 100, S&P 500 Forecasts: Neutral

• The Dow Jones has the most encouraging technical outlook in the coming week
• The Nasdaq 100 suffered a major break in support last week and is vulnerable to deeper losses
• The S&P 500 remains above the trend line in March and may recover, but further weakness in technological stocks may leave it with little choice.

Dow Jones Technical Forecast

Outlook: neutral

US equities have had a difficult week as rising Treasury returns have put investors under pressure to consider other alternatives to the Dow Jones, Nasdaq 100 and S&P 500. The sudden changes on the fundamental side have encouragedrhad significant technical differences between the US indices visible on their respective price charts. The Dow Jones did better than his counterparts as you seem to be enjoying a confluence of support slightly below the Friday closes.

Dow Jones Price Chart: Daily Timeframe (January 2020 – February 2021)

With that end in sight, the Dow Jones will look at the rising trend line from January 2018, which will bounce the peak in February 2020, followed by a nearby Fibbonaci plane, the 50-day moving average and a rising trend line from March 2020. Together, the technical levels should provide significant support to the industrial average, as it appears to want to avoid a deeper retracement. If the Dow Jones breaks below the March trend line, further losses could be envisaged as this would have a serious technical effect break.

Nasdaq 100 Technical Forecast

Outlook: Bearish

Elders, the has Nasdaq 100 already posted a serious technical interruption.Fall below the rising trend line from the lows in March and November, the Nasdaq 100 opened the door effectively lower last week and further losses may be in the pipeline due to this important breakdown. While the fundamental side is currently unfolding, the damage was done to the technical landscape and as a result of the damage, the technical heavy index may continue.

Nasdaq 100 price chart: 4 hour time frame (September 2020 – February 2021)

After the U.S. stock price action dominated for months when technology stocks dragged the other sectors higher than the Nasdaq now appears to be in a position of vulnerability and support can initially be obtained from the January swing which is low 12 738. Subsequent assistance can be found at the peak of September just below 12 500. Meanwhile, fallow @PeterHanksFXon Twitter for updates and analyzes.

S&P 500 Technical forecast

Outlook: neutral

It is not surprising that the S&P 500 has split the difference between the Dow Jones and the technological Nasdaq 100, trading above the March uptrend. The S&P 500, widely regarded as the best barometer of US equities, will be the index to see in the coming week, as a break below the trend line in March may indicate a broader stock weakness.

S&P 500 Price Chart: Daily Timeframe (January 2020 – February 2021)

If, on the other hand, the S&P 500 can fend off an interruption, broader stocks may continue to tread water, even if the Nasdaq 100 were to slow down. Either way, the Dow Jones, Nasdaq 100 and S&P 500 are approaching a turning point and it seems that strategies that benefit the Nasdaq weakness and Dow Jones strength will be well suited to the current climate.

– Written by Peter Hanks, Strategy for DailyFX.com