NASDAQ Index, SP500, Dow Jones Forecasts – SP500 And NASDAQ Test New Highs

Key Insights

• SP500 is trying to settle above the 4750 level as traders stay bullish. 
• NASDAQ gains ground amid rising demand for mega cap tech stocks. 
• Dow Jones settled below the resistance at 37,400 – 37,500.

SP500

SP500 tests new highs as traders stay bullish after NAHB Housing Market Index report, which indicated that NAHB Housing Market Index improved from 34 in November to 37 in December. Falling mortgage rates provided support to the housing market. Energy stocks are among the best performers in SP500 today as traders react to the rally in the oil markets and the strong rebound in natural gas markets. Meanwhile, rising Treasury yields put pressure on the yield-sensitive Utilities and Real Estate stocks.

RSI has recently moved back into the overbought territory, but it remains below the recent highs. The market sentiment remains bullish, and there is enough room to gain additional momentum.

NASDAQ

NASDAQ has also tested new highs amid rising demand for tech stocks. Mega cap stocks are among the leaders in the NASDAQ index today, which indicates that traders stay focused on the AI hype.

RSI is in the overbought territory, but NASDAQ has a decent chance to settle above the resistance at 16,750 – 16,800.

Dow Jones

Dow Jones is mostly flat as traders wait for additional catalysts after the strong rally. The number of gainers is almost equal to the number of losers in the Dow Jones index today.

From the technical point of view, Dow Jones needs to settle above the resistance at 37,400 – 37,500 to gain additional upside momentum in the upcoming trading sessions.

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