NASDAQ Index, SP500, Dow Jones Forecasts – Bullish Trends Hold Ahead of Critical CPI Release

Nasdaq Composite Index

The Nasdaq closed at 21,886.06, up 0.03%, marking another session of tight consolidation near its record intraday high of 22,000.97. The index remains firmly above its 50-day (21,161.48) and 200-day (19,391.36) moving averages, reflecting continued trend strength in growth and tech sectors.

Despite extended valuations, momentum remains positive, led by strength in semiconductors and AI-exposed names. Traders are watching the 22,000 level closely, but there’s no sign of distribution or topping behavior at this stage. CPI remains the near-term catalyst, especially given tech’s sensitivity to interest rate expectations.

Outlook: Bullish. With price holding near highs and no sign of breakdown, the path of least resistance remains higher. A confirmed close above 22,000.97 would mark a breakout continuation. Minor support rests near 21,300, with the 50-day below as trend support.

S&P 500 Index

The S&P 500 finished at 6,532.04, up 0.30%, continuing its push toward the record close of 6,555.97. The technical picture remains strong, with the index trading above its 50-day (6,370.42) and 200-day (5,978.10) moving averages.

Sector flows show a healthy mix of growth and defensives, with energy, healthcare, and utilities catching steady bids alongside core tech. With earnings season largely behind, attention is focused on macro inputs — particularly inflation and the Fed’s reaction function.

Outlook: Moderately Bullish. The index is in a strong position to break higher, with resistance at 6,555.97 in focus. Support sits near 6,370, with deeper risk contained unless CPI surprises significantly to the upside.

Dow Jones Industrial Average (DJIA)

The Dow closed Wednesday at 45,490.93, down 0.48%, pulling back modestly from its recent intraday high of 45,764.20. The index remains in a technically bullish structure, trading well above both its 50-day moving average (44,747) and 200-day (43,154).

Recent price action suggests short-term consolidation, with the Dow pausing just below its all-time high. However, there’s no confirmed resistance zone here — just a temporary stall after a strong run-up. The trend remains intact unless we see a close below the 50-day average.

On the macro side, traders are positioned cautiously ahead of Thursday’s U.S. CPI data. Sector performance has been mixed, with some rotation out of cyclicals and into defensive names, but not enough to indicate a shift in overall sentiment.

Outlook: Bullish. The trend remains upward, and price is consolidating near highs — not reversing. A clean breakout above 45,764 would confirm continuation, while support sits near 44,750 on any downside reaction.

Conclusion: All three U.S. indices remain technically strong and near record levels. Thursday’s CPI release is the primary event risk — a softer print could open the door to breakout rallies, while a hot reading may trigger near-term profit-taking, especially in rate-sensitive sectors.

More Information in our Economic Calendar.