Dow Jones, Nasdaq 100, S&P 500 forecasts for the coming week

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

• The Dow Jones enjoys the most encouraging technical outlook for the coming week
• The Nasdaq 100 suffered a crucial break below support last week and is vulnerable to larger losses
• The S&P 500 remains above the March trendline and could recover, but further weakness in tech stocks may leave it with little choice.

Dow Jones Technical Forecasts

Outlook: neutral

US stocks had a tough week as rising Treasury yields prompted investors to consider other alternatives to the Dow, Nasdaq 100 and S&P 500. Sudden fundamental changes haverkey technical differences between US indices visible on their respective price tables. The Dow Jones did better than its counterparts as it seems to enjoy a confluence of support slightly below the Friday closed.

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

To this end, the Dow Jones will look at the upward trendline from January 2018 which bounces off the high of February 2020, FIbbonaci level, the 50-day moving average and an uptrend line from March 2020. Together, the technical levels should provide considerable support to the industry average as it appears to be avoiding a deeper retracement. If the Dow Jones breaks below the March trendline, other losses could be in store as this would be a serious technical problem Pause.

Nasdaq 100 technical forecast

Outlook: bearish

Elsewhere, the Nasdaq 100 a already posted a serious technical break.Fall below the upward trendline of March and November lows, the Nasdaq 100 effectively opened the door to the downside last week and more losses could be in store due to this key outage. While the fundamental side is currently unfolding, the damage was inflicted on the technical landscape and because of this damage, there may be a lingering weakness for the high tech index.

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

After dominating the US stock price action for months as tech stocks dragged other sectors up the Nasdaq now appears to be in a vulnerable position and support may initially be derived from the January low 12.738. Further assistance could be found along the September high just below 12,500. Meanwhile, fto follow @PeterHanksFXon Twitter for updates and analysis.

S&P 500 Technical Forecasts

Outlook: neutral

Unsurprisingly, the S&P 500 split the difference between the industrial-trending Dow Jones and the highly technological Nasdaq 100, and is crucially trading above the March uptrend. Generally regarded as the best barometer for US stocks, the S&P 500 will be the index to watch in the coming week, as a break below the March trendline could indicate that broader equity weakness is on the horizon. .

S&P 500 price chart: daily period (January 2020 – February 2021)

If, on the other hand, the S&P 500 can avoid a breakout, wider stocks could continue to walk even if the Nasdaq 100 slowly bleeds lower. Either way, the Dow Jones, Nasdaq 100, and S&P 500 are approaching an inflection point and it looks like strategies that favor Nasdaq weakness and Dow Jones strength may be a good fit for the current climate. .

– Written by Peter Hanks, Strategist for DailyFX.com