NASDAQ Index, S&P 500, Dow Jones Forecasts: Fed Eyes One More Rate Hike Amid High Inflation

Key Insights

• S&P 500 remains bullish above the $4350 mark with an RSI indicating a mild bullish lean.
• NASDAQ showcases a short-term bullish trend, hovering above its 50-day EMA at $14,917.
• Dow Jones faces potential bearish pressure, closely eyeing the double-top resistance at $33,880.

S&P 500

On October 11, the S&P 500 (SPX) displayed moderate gains, settling at $4,366.6, a rise of +0.19% as reflected in the 4-hour chart. This benchmark index holds a pivot point at $4284. As for resistance, immediate challenges are at $4350, $4390, and extending up to $4458.

Conversely, support is found at $4242, with subsequent layers at $4175 and $4134. The Relative Strength Index (RSI) reads 59, indicating a slight lean towards bullish sentiment, while the MACD suggests an upward momentum with a value of 18.21 against its signal line of -0.58. The asset is closely trading with its 50 EMA at $4350.

Notably, a double-top pattern was observed, hinting at resistance. Fundamentally, the minutes from the FOMC September meeting conveyed that most members viewed upside risks to inflation and anticipated a possible rate hike later this year. The market consensus for SPX remains bullish above $4350.

NASDAQ

On October 11, the NASDAQ Composite Index displayed a slight upward movement, closing at $15,200, marking a growth of +0.35% within the 4-hour chart timeframe. This tech-heavy index has its pivotal point identified at $14,821.

In terms of resistance, the immediate level is pegged at $15,200, with subsequent barriers at $15,390 and $15,763. Conversely, support levels are anchored at $14,631, followed by $14,251 and down to $14,055.

Delving into technical indicators, the Relative Strength Index (RSI) stands at 71, hinting at overbought conditions, as it surpasses the 70 threshold. The Moving Average Convergence Divergence (MACD) is at 10.2, with its signal line positioned at 110.3. Currently, the NASDAQ trades above the 50-day Exponential Moving Average (EMA) of $14,917, suggesting a short-term bullish trend.

Conclusively, the NASDAQ appears bullish, particularly if it continues hovering above the $14,917 level. The upcoming sessions might see the index challenging the stated resistance levels.

Dow Jones

On October 11, the Dow Jones Industrial Average (DJIA) exhibited a slight downward shift, settling at $33,711.3, marking a decrease of 28 points within the 4-hour chart timeframe. The key pivot point for the DJIA is firmly situated at $33,445. On the upside, immediate resistance stands at $33,882, followed by subsequent levels at $34,532 and $34,982.

Conversely, the first line of support is delineated at $32,795, with deeper supports found at $32,345 and $31,696. The index currently trades just above the 50-day Exponential Moving Average (EMA) set at $33,686, providing an additional reference for the market’s short-term direction.

In conclusion, the DJIA is leaning toward a bearish sentiment, especially as it approaches the $33,880 threshold, marked by a double top pattern resistance level. Surpassing this crucial barrier could shift the trend bullish, with potential tests of the upper resistances. Investors are advised to remain cautious around these vital levels in the coming days.

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