NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As Microstrategy Soars 6.1%

SP500

SP500 managed to rebound from session lows and is moving higher as traders react to Producer Prices data. PPI increased by 0.2% month-over-month in December, compared to analyst consensus of +0.3%. Core PPI remained unchanged, compared to analyst forecast of +0.3%. Both reports signaled that inflationary pressure may be slowing down ahead of CPI report, which will be released tomorrow. Analysts expect that Inflation Rate declined from 2.9% in November to 2.7% in December, while Core Inflation Rate remained unchanged at 3.3%. Most market sectors are moving higher in today’s trading session, but healthcare stocks found themselves under material pressure.

SP500 did not manage to settle below the support at 5830 – 5840 and is moving towards the recent highs near the 5885 level. A move above this level will open the way to the test of the resistance at 5910 – 5920.

NASDAQ

NASDAQ is trying to settle back above the resistance at 20,750 – 20,800 as traders use the recent pullback as an opportunity to increase their positions in tech stocks. Microstrategy, which is up by 6.1%, is the best performer in the NASDAQ index today. The stock gained upside momentum as Bitcoin moved towards the $97,000 level.

From the technical point of view, NASDAQ needs to settle above the recent highs near 20,950 to gain additional momentum in the near term. A move above this level will push NASDAQ towards the resistance at 21,150 – 21,200.

Dow Jones

Dow Jones gains ground amid rising demand for industrials and financial stocks. Caterpillar and 3M are the biggest gainers in the Dow Jones index today.

If Dow Jones stays above the 50 MA at 42,490, it will move towards the nearest resistance level, which is located in the 42,700 – 42,800 range. On the support side, a move below 42,300 will lead to the test of the support level at 42,100 – 42,200.

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