NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests New Highs As Netflix Gains 12%

Vladimir Zernov
Published: Jan 24, 2024, 19:16 UTC

Tech's rally provided strong support to SP500 and NASDAQ.

NASDAQ Index, SP500, Dow Jones Forecasts

In this article:

Key Insights

  • SP500 made an attempt to settle above the 4900 level as the strong rally in tech stocks continued. 
  • NASDAQ tested new highs, supported by the rallies in Netflix, NVIDIA, and Advanced Micro Devices stocks. 
  • Dow Jones pulled back towards the 37,900 level as demand for defensive stocks declined. 


SP500 240124 4h Chart

SP500 tested new highs, supported by strong demand for tech stocks and encouraging PMI reports. Manufacturing PMI increased from 47.9 in December to 50.3 in January, compared to analyst consensus of 47.9. Numbers above 50 show expansion. Services PMI improved from 51.4 to 52.9, compared to analyst consensus of 51. The reports highlighted the strength of the U.S. economy. At this point, it looks that traders are not worried that strong economic data will provide Fed with an opportunity to keep rates at high levels to fight inflation. The market is focused on AI hype and the general strength of the economy, which is bullish for stocks.

Traders should note that RSI remains in the overbought territory, so the risks of a pullback are increasing.


NASDAQ 240124 4h Chart

NASDAQ tested new highs as Netflix rallied 12% after the release of the earnings report. NVIDIA and Advanced Micro Devices were among the best performers in the NASDAQ index today as demand for AI-releated stocks remained strong.

NASDAQ remains overbought, which is not surprising as the index tests historic highs. The nearest support level for NASDAQ is located in the 17,450 – 17,500 range. A move below 17,450 may boost traders’ desire to take some profits off the table after the rally.

Dow Jones

Dow Jones
Dow Jones 240124 4h Chart

Dow Jones is mostly flat despite the broad rally in the equity markets. The pullback in Healthcare and Consumer Defensive stocks puts pressure on the Dow Jones index today.

In case Dow Jones settles below the 37,900 level, it will head towards the nearest support at 37,750 – 37,800.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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