S&P500 and Nasdaq Index: US Indices Hold Weekly Gains as Traders Prep for GDP and PCE Analysis

Futures Edge Higher as GDP, PCE, and Supreme Court Ruling Loom

The major U.S. stock index futures contracts are slightly better ahead of the cash market opening on Friday. The subdued overnight trade reflects uncertainty over the Gross Domestic Product (GDP) report and the personal consumption expenditures price index (PCE) report. Both could have an impact on Fed policy. According to CNBC, investors will also be watching for a highly anticipated decision from the Supreme Court on the legality of Trump’s tariffs under the International Emergency Economic Powers Act.

Weekly Gains on the Line as Indexes Brace for a Pivotal Session

Technically speaking, the S&P 500 Index and the Nasdaq Composite Index will be trying to hold on to their weekly gains today, while the Dow looks to turn positive.

S&P 500: Resistance Cluster at 6888.89 to 6915.65 Is the Line in the Sand

The benchmark S&P 500 Index (SPX) is in a downtrend according to both the main swing chart and the 50-day moving average.

The short-term range is 7002.28 to 6775.50. The market is currently in a position to retest its retracement zone at 6888.89 to 6915.65. On Wednesday, this area stopped the rally at 6909.12.

The intermediate range is 6521.92 to 7002.28. This week’s low at 6775.50 is slightly above its retracement zone at 6762.10 to 6705.42. This zone was also tested on February 5 at 6780.13, indicating it’s key support.

The index is currently under the 50-day moving average at 6894.82. On Wednesday, the SPX attempted to recapture this level but was met with resistance.

The key area to watch on Friday is the resistance cluster at 6888.89, 6894.82, and 6915.65. A sustained move under this area will signal the presence of sellers. This could drive the index back toward the retracement zone support at 6762.10 to 6705.42. Overtaking the 50-day MA will be a sign of strength, while overtaking the 61.8% level at 6915.65 will indicate the buying is getting stronger.

Nasdaq Composite: Bulls Need to Clear a Formidable Triple Resistance Zone

The tech-heavy Nasdaq Composite Index (IXIC) is also in a downtrend based on the main swing chart and the 50-day moving average.

A trade through 22895.95 will shift momentum to the upside, but the index will still be facing heavy resistance at the price cluster formed by the 50-day moving average at 23307.57, the main swing top at 23320.62, and a 61.8% level at 23326.83. Overtake this area and traders will have a clear shot at 23988.27 to 24019.99.

On the downside, the market found support at 22256.76, inside the major retracement zone at 22290.08 to 21881.82. If this area fails, we could see a test of the 200-day moving average at 21853.38.

Dow Jones: Lagging on the Week, but the Uptrend Remains Intact

The blue chip Dow Jones Industrial Average is slightly lower for the week. It’s also in an uptrend according to the main swing chart and the 50-day moving average at 48961.84. Breaking the moving average will put the Dow in a position to test a pair of main bottoms at 48459.88 and 48428.13.

The first upside target is an uptrending line at 50372.00, followed by the all-time high at 50512.79.

More Information in our Economic Calendar.