NASDAQ Index, SP500, Dow Jones Forecasts: Steady Gains and Bullish Trends

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Published: Dec 28, 2023, 13:15 GMT+00:00

The S&P 500 Index shows a subtle uptrend, with the RSI at 62 indicating bullish sentiment and the index above its 50 EMA, pointing to potential further gains.

Key Insights

U.S. stocks showed minimal changes on Wednesday, with the DJIA slightly down, and S&P 500 and NASDAQ slightly up.
Investor confidence in upcoming Federal Reserve rate cuts contributes to positive yearly gains for DJIA, S&P 500, and NASDAQ.
Market expectations of a Fed rate cut by March 2024, based on recent PCE inflation data, influence U.S. stock market dynamics.
Tesla’s stock rise and Intel’s substantial government grant impact the corporate sector, affecting NASDAQ’s performance.

Quick Fundamental Outlook

U.S. stocks showed minimal changes on Wednesday, with the Dow Jones Industrial Average (DJIA) slightly down by 0.1%, while the S&P 500 and NASDAQ Composite slightly up by 0.1% and 0.2%, respectively.

This stability reflects investor confidence in the Federal Reserve’s potential interest rate cuts next year, following successful inflation control. The DJIA, S&P 500, and NASDAQ are set to conclude 2023 with impressive yearly gains of 13%, 24%, and 44%, respectively.

Economic data remains light, but recent PCE inflation data has increased expectations of a Fed rate cut by March 2024. In corporate news, Tesla’s stock increased after announcing a new Model Y version from Shanghai, despite concerns over steering and suspension parts. Intel also received a substantial government grant for a new chip plant in Israel.

SPX SP500 Price Forecast

SPX SP500 – Chart

The S&P 500 Index (SPX) is currently exhibiting a subtle uptrend, registering a modest gain of 0.14% to reach 4781.59. This cautious optimism is framed within a set of critical technical levels. The index has surpassed its pivot point of $4,775, which might act as a precursor to further upward movement.

The immediate resistance levels are identified at $4,836, $4,900, and $4,981. On the downside, key support levels are marked at $4,694, $4,612, and $4,539.
From a technical perspective, the Relative Strength Index (RSI) stands at 62, hinting at a growing bullish sentiment without reaching overbought conditions.

The Moving Average Convergence Divergence (MACD) value of -2.2, although lower than its signal line at 42.5, does not significantly detract from the positive outlook. Crucially, SPX trades above its 50-Day Exponential Moving Average (EMA) of $4,715, reinforcing the current bullish inclination in the market. In summary, the SPX’s trend appears to be bullish above the $4,715 level.

Dow Price Forecast

Dow – Chart

The Dow Jones Industrial Average (DOW) is experiencing a slight downturn, currently trading at 37619.80, marking a decrease of 0.11%. The index navigates through significant technical levels, with the pivot point positioned at $37,466.

Looking upward, the immediate resistance lies at $37,712, followed by higher levels at $38,007 and $38,421. In terms of support, the DOW finds a base at $37,101, with further safety nets at $36,795 and $36,508.

The technical indicators provide a somewhat bullish outlook. The Relative Strength Index (RSI) is at 60, hovering above the midpoint, indicating a bullish market sentiment. Additionally, the Moving Average Convergence Divergence (MACD) stands at 8.60, with its signal line at 89.40, suggesting potential momentum changes.

In summary, the DOW’s trend appears bullish above the $37,345 level, pointing to a potential upward trajectory in the short term.

NASDAQ Price Forecast

NASDAQ – Chart

The NASDAQ Composite Index is displaying a marginal upward trajectory, with a recent increase of 0.17%, bringing it to 15099.18. This positive momentum is being framed within a spectrum of essential technical levels.

The index has crossed its pivot point at $15,065, suggesting the potential for further upward movement. Key resistance levels are identified at $15,277, $15,599, and $15,984, while significant support levels are established at $14,745, $14,482, and $14,145.

Technically, the Relative Strength Index (RSI) stands at 64, indicating a moderately bullish sentiment in the market. This is bolstered by the NASDAQ trading above its 50-Day Exponential Moving Average (EMA) of $14,829, suggesting a short-term bullish trend.

However, the Moving Average Convergence Divergence (MACD) at -6.28, despite being below its signal line at 187.91, does not significantly diminish the optimistic outlook.

In conclusion, the NASDAQ’s overall trend appears bullish above the $15,000 mark. This bullish stance is underpinned by the index’s movement above its key support level and its positioning relative to the 50 EMA. Investors should closely monitor these indicators and levels to capitalize on potential market movements.

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

About the Author

Arslan Aliauthor

Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.

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