NASDAQ, S&P500 and Dow Jones Forecasts: Market Poised for Potential Gains

By:

Updated: Nov 15, 2023, 13:23 GMT+00:00

NASDAQ's ascent beyond the $13,807 pivot underscores a market in recovery, setting a bullish course for the index.

Key Insights

NASDAQ rallies, surpassing the pivotal $13,807 mark.
S&P 500 remains bullish above the $4,450 support level.
Dow Jones edges higher, with eyes set on $35,023 resistance.
NASDAQ exhibits strong bullish bias, RSI signals overbought conditions.
Dow Jones maintains a modest uptick, bullish above $34,750.

Quick Fundamental Outlook

On Wednesday, U.S. stock futures indicated a positive start, influenced by a lower-than-expected October inflation report and anticipation of upcoming major retail earnings. Dow, S&P 500, and Nasdaq 100 futures all showed modest gains of 0.1%, 0.2%, and 0.3%, respectively.

This optimism follows a strong performance in the previous session, fueled by Labor Department data revealing a significant slowdown in annual inflation to 3.2%.

These figures have raised expectations that the Federal Reserve’s aggressive interest rate hikes to control inflation may be nearing an end, signaling a potential shift in monetary policy.

S&P500

SP500 Chart

As of today, the S&P 500 index stands at 4495.71, marking a 1.91% increase within the last 24 hours. The index, in its 4-hour chart view, presents an intriguing landscape of resistance and support levels.

The pivot point rests at $4,400, while immediate resistance hovers at $4,510. Should the index ascend, the next barriers lie at $4,610 and $4,702. Conversely, support is found at $4,302, followed by lower thresholds at $4,219 and $4,106.

The Relative Strength Index (RSI) is currently at a high of 76, indicating an overbought state and suggesting caution among bulls. Meanwhile, the MACD showcases a bullish trend, though such optimism must be tempered with the RSI’s cautionary note.

The 50-day Exponential Moving Average (EMA) stands at $4,332, reinforcing the short-term bullish sentiment as the current price is well above this average.

Chart patterns reveal a double-top pattern with extended resistance at $4,500. However, the bullish indicators suggest that breaching this resistance could catalyze further buying.

Given these observations, the overall trend for the S&P 500 is bullish above the $4,450 mark, with a short-term forecast anticipating the index to challenge the resistance levels in the near future.

NASDAQ

NASDAQ Chart

As the markets opened on November 15, the NASDAQ Composite Index showcased a commendable rally, climbing by 2.13% to reach $15,812.47. In the midst of a market displaying signs of a cautious but resolute recovery, the NASDAQ index’s performance is a beacon of optimism for traders and investors alike.

A closer look at the technical landscape reveals the index has successfully breached the pivotal $13,807 mark, suggesting a newfound bullish momentum that could redefine the upper resistance bounds at $14,154, followed by $14,411 and potentially testing $14,634 in the near term.

The Relative Strength Index (RSI) is currently positioned at 76, indicating an overheated market that could anticipate a cooling period. However, the Moving Average Convergence Divergence (MACD) presents a contrasting perspective with a positive crossover, reinforcing the bullish sentiment reflected in the index’s price action.

This bullish stance is further cemented by the index’s price residing comfortably above the 50-day EMA at $15,039, traditionally a sign of enduring bullishness.

In summary, the NASDAQ’s technical indicators align to forecast a continuation of the current uptrend, with the short-term outlook remaining robust as long as the index sustains above the $13,900 threshold.

Dow Jones

Dow Jones Chart

The Dow Jones Industrial Average, a key barometer of market health, edged up a modest 0.11% to close at 34,977 on November 15, signaling a cautious optimism among investors.

The market’s pulse, reflected by the pivot point at $34,759, suggests a steadfastness that could set the stage for testing immediate resistance at $35,023. Should investor sentiment remain buoyant, we may see an approach towards $35,367, with an eye on further resistance at $35,647.

Technical indicators underline the index’s current strength, with the Relative Strength Index (RSI) peaking at 82, a clear sign of an overbought market. However, the MACD reading of 54 indicates ongoing bullish momentum, a sentiment echoed by the price position above the 50-day EMA of $34,261.

Considering these factors, the Dow exhibits a bullish trend that could continue if it maintains above the crucial $34,750 level. The forthcoming sessions will be pivotal, potentially ushering the index towards loftier resistances as outlined by the technical forecast.

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

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.