NASDAQ Index, SP500, Dow Jones Forecasts: Tech Earnings, Fed Speculation Shape Market

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Updated: Jan 29, 2024, 12:44 UTC

Tech giants' earnings and the Fed's decision this week set to steer NASDAQ, S&P 500, and Dow Jones forecasts.

Starting a crucial week with the Federal Reserve’s rate decision and major tech earnings, U.S. index futures indicate a cautious market. The S&P 500 has hit several record highs recently, spurred by rate cut expectations. However, weak forecasts from Intel and Tesla have raised concerns about overvalued stocks.

Key earnings from tech giants like Microsoft, Apple, Amazon, and other major firms are in focus. Investors are weighing the likelihood of rate cuts as early as March, with crucial job reports also drawing attention.

Early trading shows a slight dip in Dow futures, while S&P and Nasdaq futures are modestly up. Market sentiment is mixed, with tech stocks like Intel and Tesla showing varied premarket trends, affecting forecasts for NASDAQ, S&P 500, and Dow Jones.

SPX SP500 Price Forecast

SPX SP500 – Chart

The S&P 500 Index (SPX), as of its last closing, stands at $4890.96, entering a decisive phase in its market journey. With a pivot point at $4902.08, the index faces resistance at $4921.52, $4947.45, and $4974.55, each level posing a potential challenge to its upward movement.

Conversely, the support levels at $4859.07, $4830.79, and $4808.40 may offer stability in case of a downturn. The 50-day and 200-day Exponential Moving Averages are positioned at $4774.87 and $4573.77, respectively, indicating a robust undercurrent.

A notable observation is the formation of a double top pattern around $4902, coupled with Doji candles, suggesting a limitation in the index’s upward potential. Consequently, the SPX’s trend is leaning towards bearish below the $4902 threshold, demanding cautious navigation by market participants.

Dow Price Forecast

DJIA Chart

On January 29, the Dow Jones Industrial Average (DJIA) ended the week at $38084.3, poised for significant technical developments. Its pivot point, set at $37830.62, is crucial for determining the near-term trend.

Resistance is found at $38203.87, $38505.00, and $38901.31, each posing potential hurdles to the Dow’s ascent. Conversely, support levels are marked at $37446.53, $37109.48, and $36753.18, offering points of stabilization in case of price declines.

The 50-day and 200-day Exponential Moving Averages (EMAs) at $37843.25 and $37262.14 respectively, lay a robust foundation for the index. A rising wedge pattern on the 4-hourly chart suggests an uptrend might be in the offing. The index is currently bolstered above a previous double top resistance, now acting as support.

The overall trend for the Dow is bullish above $38,000, suggesting a likelihood of further upward movement.

NASDAQ Price Forecast

NASDAQ – Chart

As of January 29, the NASDAQ closed the previous week at 15455.36, facing a crucial juncture in its market trajectory. The index’s pivot point is currently placed at $15605.21, a key level determining its short-term direction.

Resistance levels are set at $15728.41, $15858.84, and $15989.28, each marking potential hurdles for upward movement. In contrast, support levels are established at Fibonacci retracement markers: $15387.82 (23.6% Fibo), $15264.63 (38.2% Fibo), and $15155.93 (50% Fibo), offering areas for potential rebounds.

The 50-day and 200-day Exponential Moving Averages (EMAs) stand at $15019.26 and $14260.16, respectively, providing a broader perspective on the index’s underlying momentum.

Currently, NASDAQ appears to struggle with crossing over the $15600 mark, showing signs of being overbought. A closure below this pivotal point may trigger a selling trend towards the mentioned Fibonacci levels.

In conclusion, the NASDAQ’s trend leans towards bearish below $15605.21, indicating potential downward movements in the short term.

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About the Author

Arslan Aliauthor

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.