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NASDAQ Index, SP500, Dow Jones Forecasts: US Stocks Showed Modest Gains amid Mixed Fed Signals

By:
Arslan Ali

Investors weigh in on the Federal Reserve's mixed messages, impacting major indices like the Dow Jones 30 and SP500, with eyes on the upcoming FOMC.

Indices Recap

In this article:

Key Insights

  • U.S. stocks showed modest gains amid mixed Fed signals, hinting at cautious market optimism.
  • Fed Governor Waller’s openness to rate cuts contrasts with Governor Bowman’s rate hike stance.
  • High likelihood of stable rates next month influences market expectations.
  • S&P 500 (SPX) sees a minor uptick; technicals suggest bullish trend above $4,530.
  • Dow Jones (DJIA) edges up, showing cautious investor sentiment; bullish above $35,400.

Quick Fundamental Outlook

U.S. stocks remained modestly higher, navigating mixed signals from Fed officials. The SPX, NASDAQ, and DOW all witnessed slight gains, suggesting a pause rather than an end to recent market optimism.

Investors, digesting varied Fed perspectives ahead of December’s FOMC meeting, are particularly attentive to Governor Waller’s openness to rate cuts if inflation eases, contrasting with Governor Bowman’s inclination towards another rate hike.

Markets, now factoring a high probability of stable rates next month, await the FOMC’s direction, impacting future market performance across major indices.

SPX SP500 Prices Forecast

SPX - Chart
SPX – Chart

The S&P 500 Index (SPX), a barometer of U.S. equities, exhibits a slight uptick in its latest trading session, ticking up by a mere 0.10% to close at 4554.9 points. This marginal climb comes amidst a session that presented a mix of macroeconomic cues and investor sentiment.

In terms of technical analysis, the SPX is currently hovering above a pivot point of $4,610, suggesting that the bulls have a slight edge in the market. The immediate resistance is poised at $4,693, with further upside potential to $4,764 if the momentum persists. On the downside, support levels are identified at $4,384 and $4,313, which could come into play if the index retreats.

The Relative Strength Index (RSI) is currently at 73, signaling that the SPX may be approaching overbought territory. However, the Moving Average Convergence Divergence (MACD) is at 47.60, indicating that there’s still potential for an upward push before any significant pullback.

This is corroborated by the index trading above the 50-Day Exponential Moving Average (EMA) of $4,434, further bolstering the short-term bullish stance.

A notable chart pattern is the double top breakout at the 4530 level, now serving as a support level, hinting at a sustained bullish trajectory.

In summary, the overall trend for the SPX remains bullish above the $4,530 threshold, suggesting that we could see the index test the resistance at $4,693 in the near term, barring any negative economic surprises or shifts in market sentiment.

Dow Prices Forecast

Dow - Chart
Dow – Chart

NASDAQ Prices Forecast

NASDAQ - Chart
NASDAQ – Chart

The NASDAQ Composite index observed a modest increase in its latest session, climbing by 0.30% to reach 14,281.76. This rise, though slight, signals a cautiously positive market sentiment as investors navigate through a blend of economic and technological sector developments.

In technical terms, the NASDAQ is currently hovering just above its pivot point at $14,639, indicating a potential for further upward movement. Resistance is noted at $14,828 and $14,991, while immediate support lies at $14,032, providing a crucial threshold to mitigate any short-term declines. Further support is found at $13,730 and $13,458, essential levels in case of a broader market pullback.

The Relative Strength Index (RSI) stands at 60, suggesting a balanced market sentiment with a mild bullish inclination. This is further substantiated by the Moving Average Convergence Divergence (MACD) showing a value of 193.68, indicating a prevailing upward momentum. The NASDAQ currently trades above the 50-Day Exponential Moving Average (EMA) of $14,049, reinforcing the short-term bullish trend.

However, a double-top pattern observed at $14,375 is currently acting as a barrier, limiting the NASDAQ’s upward trajectory. This pattern will be crucial in determining whether the index can sustain its bullish momentum or face a reversal.

In summary, the NASDAQ’s overall trend appears bullish, contingent upon a breakout above the $14,375 mark. The short-term forecast anticipates the index testing higher resistance levels, particularly around $14,828, in the forthcoming trading sessions, provided the current market dynamics persist.

 

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

About the Author

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.

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