NASDAQ Index, SP500, Dow Jones Forecasts: Market Reacts to EV Shift

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Published: Jan 2, 2024, 12:58 GMT+00:00

The S&P 500 Index...closed at 4,769.82, down by 0.28%, indicating a potential downward momentum below the $4,795 resistance level.

Key Insights

U.S. stock futures show a decline, hinting at a pullback after 2023’s gains.
S&P 500, Nasdaq, and Dow await key economic data to shape trends. S&P 500 faces resistance near $4,853; RSI indicates bullish sentiment.
Dow Jones sees minor decline, with bearish sentiment below pivot point.
NASDAQ trades above 50 EMA but risks bearish turn below $15,010.

Quick Fundamental Outlook

U.S. stock futures, including the Dow, S&P 500, and Nasdaq, traded lower on Tuesday, indicating a pullback after significant gains in 2023. These indices had risen last year, fueled by expectations of Federal Reserve rate cuts, leading to a potential economic soft landing.

The S&P 500 had surged by over 24%, the Nasdaq by 43%, and the Dow by nearly 14%. Upcoming economic data, starting with the U.S. manufacturing PMI and culminating in Friday’s nonfarm payrolls report, is anticipated to influence future market trends and the Fed’s decision-making in March.

Additionally, China’s BYD’s record EV production puts pressure on Tesla, challenging its position in the EV market.

SPX SP500 Price Forecast

SPX SP500 – Chart

On January 2, the S&P 500 Index (SPX) experienced a slight decline, closing at 4,769.82, down by 0.28%. Currently, the index is oscillating around a pivot point of $4,794, with immediate resistance levels identified at $4,853, $4,915, and $4,981.

Support levels are found at $4,694, $4,612, and $4,539. The Relative Strength Index (RSI) stands at 62, indicating a moderately bullish sentiment, while the Moving Average Convergence Divergence (MACD) is at -5.51 against a signal of 35.38, suggesting a potential downward momentum.

The index is trading above its 50-Day Exponential Moving Average (EMA) of $4,664, but a double top pattern near $4,795 hints at possible resistance, leaning towards a bearish trend below this level.

Dow Price Forecast

Dow – Chart

The Dow Jones Industrial Average (DOW) experienced a slight decline on Tuesday, January 2, closing at 37,533, down by 0.39%. Currently hovering around a pivot point of $37,768, the index faces resistance at $38,007, $38,268, and $38,480, with support at $37,485, $37,121, and $36,816.

The Relative Strength Index (RSI) at 43 indicates a bearish sentiment, while the Moving Average Convergence Divergence (MACD) at -25.67 suggests potential downward momentum.

The index’s price is currently near the 50-Day Exponential Moving Average (EMA) of $37,479. A break below the crucial $37,600 level could reinforce the bearish outlook.

NASDAQ Price Forecast

NASDAQ – Chart

On Tuesday, January 2, the NASDAQ experienced a downtick, closing at 15,011, a decline of 0.43%. The index is currently navigating around a pivot point of $15,058, with resistance levels at $15,277, $15,599, and $15,984. Support is established at lower levels of $14,745, $14,482, and $14,145.

The Relative Strength Index (RSI) at 60 suggests moderate bullish sentiment, but the Moving Average Convergence Divergence (MACD) at -25.10 points to potential bearish momentum.

The index is trading above the 50-Day Exponential Moving Average (EMA) of $14,643, indicating a short-term bullish trend, but a downward breakout below the $15,010 level could lead to a bearish bias.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Arslan Aliauthor

Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.

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