NASDAQ Index, SP500, Dow Jones Forecasts: Bullish Trends Emerge Despite Fed’s Temperance on Rate Cuts

Key Insights

• S&P 500 edges up 0.5%, nearing record highs, defying Fed’s tempered rate cut expectations.
• NASDAQ Composite rises 0.61%; Dow Jones remains steady amid mixed market signals.
• Goldman Sachs boosts S&P 500 year-end forecast to 5,100, citing Fed’s dovish pivot and lower consumer prices.
• Apple’s stock dips over patent dispute; U.S. Steel surges following acquisition news.
• NASDAQ shows strong momentum; SPX and Dow display cautious bullish trends.

Quick Fundamental Outlook

On Monday, the S&P 500 (SPX) rose 0.5%, nearing its record high, despite Federal Reserve officials’ efforts to temper expectations for early rate cuts. The NASDAQ Composite increased by 0.61%, while the Dow Jones Industrial Average remained flat.

Fed officials like Austan Goolsbee and Loretta Mester emphasized the need for continued restrictive monetary policy, contradicting market reactions to earlier dovish signals from the Fed. Goldman Sachs raised its S&P 500 year-end forecast to 5,100, influenced by the Fed’s dovish pivot, lower consumer prices, and expected declines in real yields.

Apple’s stock dipped following a pause in Apple Watch sales due to a patent dispute. U.S. Steel’s stock surged after Nippon Steel announced plans to acquire it, while Adobe Systems’ stock rose after abandoning its deal for Figma.

SPX SP500 Prices Forecast

The S&P 500 Index (SPX) on December 19 showcases a steady climb, marking a 0.45% increase to 4740.57. This movement situates SPX near a critical pivot point at $4,687.95. It faces immediate resistance at $4,767.25, with further barriers at $4,808.37 and $4,868.58. On the support front, levels are seen at $4,605.71, $4,538.16, and $4,476.48.

The Relative Strength Index (RSI) is notably high at 83, signaling overbought conditions, which might suggest a potential pullback. The Moving Average Convergence Divergence (MACD) stands at 7.66 with a signal of 51.65, indicating sustained upward momentum.

The 50-Day Exponential Moving Average (EMA) at $4,572.84 underpins a short-term bullish trend, as SPX currently trades above this level. Chart analysis on a 4-hour timeframe shows SPX advancing towards the next resistance level at the 2.27% Fibonacci extension of 4768, hinting at further potential gains.

Overall, the trend for SPX is bullish above $4,690, with expectations of challenging higher resistance levels in the short term.

Dow Prices Forecast

On December 19, the Dow Jones Industrial Average (DOW) saw a marginal increase, gaining 0.08% to reach 37323.21. The index is hovering around its pivot point of $37,168, with immediate resistance at $37,854 and further barriers at $38,622 and $39,030. Support levels are set at $36,789, $36,509, and $36,036.

The Relative Strength Index (RSI) stands high at 85, indicating overbought conditions which could signal a potential retraction. The Moving Average Convergence Divergence (MACD) presents a value of -33.08 against a signal of 153.66, portraying a complex market sentiment.

The 50-Day Exponential Moving Average (EMA) is at $35,345, with the DOW trading above this mark, suggesting a short-term bullish trend. However, the current chart patterns, including neutral candles like Doji and spinning top, indicate a weaker trend and neutral bias, as these formations are typically associated with indecision.

Conclusively, the overall trend for DOW is cautiously bullish above the $37,168 mark. In the short term, it is expected to test higher resistance levels, but the mixed signals from technical indicators and chart patterns suggest a market in flux, with investors potentially looking for clearer directional cues.

NASDAQ Prices Forecast