NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Micron Soars 13%

SP500

SP500 gains ground as traders react to U.S. inflation reports. Inflation Rate declined to 2.7% in November, while Core Inflation Rate decreased to 2.6%. Both figures were lower than analyst estimates. It should be noted that the government shutdown hurt October price data, and may have had an impact on November price data as well. However, traders are happy to see that inflation is going down, which provides Fed with an opportunity to cut rates. Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report indicated that 224,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 225,000. Most market sectors moved higher in today’s trading session. Energy stocks were among the biggest losers as traders focused on pullbacks in natural gas and oil markets. Consumer defensive stocks have also moved lower as demand for safe-haven assets declined.

In case SP500 manages to settle above the 50 MA at 6834, it will head towards the nearest resistance level, which is located in the 6870 – 6880 range. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge.

NASDAQ

NASDAQ rallied amid strong demand for tech stocks. Micron, which was up by 13%, was the biggest gainer in the NASDAQ index today. The stock gained upside momentum as traders reacted to the better-than-expected earnings report.

The nearest resistance level for NASDAQ is located in the 25,200 – 25,250 range. A successful test of this level will open the way to the test of the next resistance at 25,800 – 25,850.

Dow Jones

Dow Jones moved higher but failed to gain strong upside momentum. The pullback in healthcare and consumer defensive stocks put some pressure on the Dow Jones index today.

If Dow Jones climbs above the 48,400 level, it will move towards the nearest resistance at 48,700 – 48,800.

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