Dow Jones, Nasdaq 100, S&P 500 Predictions for the following week

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

• Dow Jones has the most encouraging technical outlook next week
• The Nasdaq 100 suffered a crucial break below support last week and is vulnerable to further losses
• The S&P 500 remains above the March trend line and may recover, but an additional weakness in technology stocks may leave you with little choice in the matter

Dow Jones Technical Forecast

Outlook: Neutral

US stocks have had a difficult week with rising Treasury yields putting pressure on investors to consider other alternatives to Dow Jones, Nasdaq 100 and S&P 500. The sudden changes on the fundamental side spurredred the main technical divergences between US indices visible in their respective price charts. Dow Jones fared better than its counterparts it seems to enjoy a confluence of support slightly below The Friday closing.

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

For this purpose, the Dow Jones will look at the upward trend line starting in January 2018, which counters the upturn in February 2020, followed by FIBbonaci level, the 50-day moving average and an upward trend line from March 2020. Together, technical levels are expected to give considerable support to the industrial average in an attempt to prevent a further setback. The Dow Jones is expected to break below the March trend line, more losses may be reserved, as it would constitute a serious technical problem break.

Technical preview of the Nasdaq 100

Outlook: Bearish

Elsewhere, the Nasdaq 100 has already posted a serious technical break.Fall below the upward trend line of the March and November lows, the Nasdaq 100 effectively opened the door down last week and additional losses can be booked as a result of this key breach. While the fundamental side is developing, the damage was caused to the technical landscape and because of that damage, there may be continued weakness for the high-tech index.

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

After dominating the US stock price for months, as technology stocks dragged other sectors over the NAsdaq now appears to be in a position of vulnerability and support may initially be derived from the January downward swing around 12,738. Subsequent assistance can be found throughout the September high, just below 12,500. In the meantime, ffollow @PeterHanksFXon Twitter for updates and reviews.

Technical Forecast S&P 500

Outlook: Neutral

Unsurprisingly, the S&P 500 divided the difference between the industrial-trend Dow Jones and the high-tech Nasdaq 100, and is crucially traded above the March uptrend. Generally seen as the best barometer of US equities, the S&P 500 will be the index to watch for the following week, as a break below the March trend line could signal that a broader stock weakness is on the horizon.

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

If, on the other hand, the S&P 500 can prevent a downward break, the broader stocks can continue to step in the water, even if the Nasdaq 100 slowly leaks down. Either way, the Dow Jones, Nasdaq 100 and S&P 500 are approaching an inflection point and it appears that strategies that favor Nasdaq’s weakness and Dow Jones’ strength may be appropriate for the current climate.

– Written by Peter Hanks, Strategist for DailyFX.com