NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ And Dow Jones Test All-Time Highs

Key Insights

• SP500 is trying to settle above the 4770 level as the strong rally continues. 
• NASDAQ moved above the 16,800 level as demand for tech stocks remained strong. 
• Dow Jones tested resistance at 37,500.

SP500

SP500 tests new highs as traders stay bullish. Today, traders focused on the housing market data. Building Permits declined by 2.5% month-over-month in November, while Housing Starts increased by 14.8%. Treasury yields moved lower as bond traders remained focused on dovish Fed. The expectations of rate cuts in the first half of 2024 serve as the key bullish catalyst for SP500. The current market sentiment is extremely bullish, and it looks that the rally is driven by the fear of missing out (FOMO). The rally is extremely broad, and all market segments are moving higher in today’s trading session.

RSI moved further into the overbought territory, but it stays below the recent highs. From a big picture point of view, SP500 is heading towards all-time high levels.

NASDAQ

NASDAQ is also moving higher amid a broad rally in the equity markets. Demand for tech stocks remain strong as traders bet that AI will be a game changer for the industry.

NASDAQ will likely gain additional upside momentum in case it settles above the resistance at 16,750 – 16,800. In this case, NASDAQ will find itself in the unchartered territory, so its near-term dynamics will depend on general market sentiment.

Dow Jones

Dow Jones test new highs as traders bet that the current rally will continue without a pullback.

Traders should note that there are no resistance levels above 37,500 as Dow Jones is testing all-time highs.

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