NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Tests Historic Highs As Intel Gains 7.3%

SP500

SP500 tested historic highs as traders reacted to the better-than-expected ISM Services PMI report. The report indicated that ISM Services PMI improved from 52.6 in November to 54.4 in December, compared to analyst consensus of 52.3. Numbers above 50 show expansion. The weaker-than-expected job market data did not put any pressure on stocks. JOLTs Job Openings decreased from 7.67 million to 7.146 million, compared to analyst forecast of 7.60 million. ADP Employment Change report showed that private businesses added 41,000 jobs in December, compared to analyst consensus of 47,000. It should be noted that most market sectors moved lower in today’s trading session.

SP500 climbed above the resistance at 6940 – 6950 and is trying to settle above the 6960 level. In case this attempt is successful, SP500 will head towards the 7000 level. RSI remains in the moderate territory, so there is enough room to gain additional upside momentum in case the right catalysts emerge.

NASDAQ

NASDAQ moved higher, supported by strong performance of Intel stock. Intel gained 7.3% as the company revealed the next generation of AI PC processors.

A successful test of the resistance level at 25,800 – 25,850 will open the way to the test of the next resistance at historic highs near the 26,300 level.

Dow Jones

Dow Jones moved lower amid falling demand for industrials and financial stocks. Caterpillar, 3M, and Honeywell were among the biggest losers in the Dow Jones index today.

From the technical point of view, Dow Jones made an attempt to settle above the resistance at 49,500 – 49,600 but lost momentum and pulled back towards the 49,200 level. In case Dow Jones manages to settle below the 49,200 level, it will head towards the nearest support level, which is located in the 48,700 – 48,800 range. The 50 MA is at 48,669, so Dow Jones may receive strong support near 48,700.

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