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

By:

Arslan Ali

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.

In this article:

US SPX 500

-0.12%

US Tech 100

-0.19%

US Wall St 30

-0.09%

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 is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.