Nasdaq, Dow and S&P 500 Forecast: Buyers Return After Fed

The Nasdaq 100 has been strong during early trading on Thursday, as we are seeing the U.S. indices pop a bit higher in pre-market trading regardless. The concerns coming out of the Federal Reserve interest rate decision seem to be gone now, as traders are focusing on the fact that the economy in the United States is actually performing better than even the Federal Reserve had anticipated. Because of this, it looks as if the buyers have returned.

The Dow Jones 30 has bounced from the crucial 51,550 region, an area that's been support for a couple of months now. We also see the stochastic oscillator crossing in the oversold condition. Ultimately, this could be the beginning of a bullish run attached to it. We'll have to wait and see, but it certainly looks strong, and we have pretty much wiped out most of the losses from the Federal Reserve interest rate decision day, which in and of itself is a pretty strong turn of events.

The S&P 500 has screamed higher overnight as traders have just jumped in and started buying. We are well above that crucial 7,600 level, an area that's been important for a while and now looks very much like an area where a lot of buyers appear. The question now is whether or not the S&P 500 can reaffirm its bullish run and start heading toward the 7,800 level. The 7,800 level has been a bit of a tough nut to crack, but the resiliency of the S&P 500 cannot be ignored at this point. It certainly looks like the buyers are starting to return in force.

If you'd like to know more about technical analysis and how traders use it, please visit our educational area .

US Dollar Price Forecast: Dollar Strengthens as Fed-BoE Policy Divergence Widens; Key Levels for EUR/USD and GBP/USD