NASDAQ Index, SP500, Dow Jones Forecasts: Markets Eye Corporate Reports, Dow Nears 38,000 Mark

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Published: Jan 23, 2024, 13:23 GMT+00:00

In a market poised for action, Dow flirts with 38,000 while S&P 500 and NASDAQ balance on pivotal earnings and economic data.

U.S. stock futures stable; S&P 500, NASDAQ, and Dow hint at cautious optimism amid corporate earnings anticipation.
S&P 500 continues positive trend, Dow surpasses 38,000 in rebound; investors eye “soft landing” in economy.
Upcoming reports from Johnson & Johnson, Procter & Gamble, Netflix to test market sentiment against key economic data.

Quick Fundamental Outlook

The U.S. stock futures showed little change as investors anticipated a flurry of corporate earnings and key economic data. The S&P 500, Nasdaq 100, and Dow futures remained largely stable, continuing Monday’s rally driven by optimism for strong corporate performances.

The S&P 500 notably marked its third consecutive positive close, while the Nasdaq Composite rose slightly despite minor dips in major tech stocks. The Dow Jones surpassed 38,000, reflecting a rebound after a sluggish start to the year.

This recovery is partly attributed to hopes for a “soft landing” of the U.S. economy, where high interest rates might reduce inflation without significantly slowing economic growth.

Upcoming corporate reports from Johnson & Johnson, Procter & Gamble, and 3M, along with later earnings from Netflix and Texas Instruments, are set to test this upbeat market sentiment. Additionally, investors await the first GDP report for the last quarter of 2023 and December’s inflation data, crucial for future market directions.

SPX SP500 Price Forecast

SPX SP500 – Chart

On January 23, the S&P 500 (SPX) experienced a slight downturn, trading at 4850.44, marking a 0.22% decrease. The index currently hovers around critical technical levels, with a pivotal point set at $4,869.51. Immediate resistance is found at $4,907.21, escalating to further levels at $4,941.39 and $4,976.49.

Conversely, support is established at $4,795.14, followed by $4,758.71 and $4,711.06. The 50 EMA and 200 EMA are positioned at $4,735.12 and $4,548.30, respectively, indicating underlying momentum.

Notably, the SPX recently broke through an ascending triangle pattern at the 4795.14 level, surging towards 4869.50. However, current overbought conditions and the formation of a shooting star pattern suggest potential selling pressure.

The overall trend for SPX is bearish below the $4869.50 mark, with a short-term forecast indicating a likelihood of the index testing its upper resistance levels.

Dow Price Forecast

DJIA Chart

On January 23, the Dow Jones Industrial Average trading at 37937.25, marking a 0.18% decrease. The index currently navigates near vital technical junctures. The established pivot point is at $38,103.89, with escalating resistance levels observed at $38,243.45, $38,365.80, and $38,472.20.

Conversely, immediate support is seen at $37,728.83, followed by $37,588.18 and $37,371.35. The 50 EMA and 200 EMA stand at $37,636.03 and $37,079.25 respectively, indicating a cautious market sentiment.

Presently, the Dow Jones is in an overbought zone, showing bearish candle formations below the $38,103.89 level. This pattern suggests a likelihood of the index targeting the 23.6% Fibonacci retracement level.

The overall trend is bearish below the pivot point, hinting at potential downward movement in the short term.

NASDAQ Price Forecast

NASDAQ – Chart

On January 23, the NASDAQ experienced a minor decline, trading at 15360.29, down 0.09%. This movement places the index near crucial technical levels. The pivot point is identified at $15,440.93, with immediate resistance levels situated at $15,596.69, $15,716.50, and $15,888.23.

On the downside, support is found at $15,225.27, followed by $15,041.56 and $14,841.87. The 50 EMA and 200 EMA are noted at $14,846.49 and $14,158.85, respectively, suggesting a bearish undertone.

The index’s position below its pivot point indicates a bearish trend, with the potential to test lower support levels. However, surpassing the pivot point could shift the momentum.

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

About the Author

Arslan Aliauthor

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.