NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Test New Highs As Rally Continues

Key Insights

• SP500 settled near the 4510 level as traders remained bullish after the release of economic data. 
• NASDAQ tested new highs but lost momentum and pulled back on profit-taking. 
• Dow Jones made an attempt to climb above the psychologically important 35,000 level. 

SP500

SP500 continues to move higher as traders stay bullish despite the rebound in Treasury yields. Today, traders focused on the PPI report, which showed that Producer Prices declined by 0.5% month-over-month in October. Analysts expected that PPI would grow by 0.1%. Core PPI remained unchanged on a month-over-month basis. Traders also had a chance to take a look at the Retail Sales data. The report showed that Retail Sales declined by 0.1% month-over-month in October, compared to analyst consensus of -0.3%. NY Empire State Manufacturing Index improved from -4.6 in October to 9.1 in November, compared to analyst forecast of -2.8. The reports provided material support to major indices as they showed that inflation has started to slow down while the economy remained in a decent shape.

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

NASDAQ

NASDAQ made an attempt to settle above the 15,900 level but lost momentum and pulled back as traders took some profits off the table after the strong rally. The continuation of the rebound in Tesla stock provided some support to NASDAQ index today.

The trading volume is high, so there are many buyers and sellers at current levels. This is an important point as failure to settle above the 15,900 level may lead to a pullback, which will be triggered by profit-taking.

Dow Jones

Dow Jones gains ground amid a broad rally in the equity markets. Disney, which is up by more than 3%, is the best-performing stock in the Dow Jones index today. Traders continue to buy Disney shares after a strong earnings report, which was released earlier in November.

Dow Jones is extremely overbought, so the index needs significant catalysts to continue the current move without a technical pullback.

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