NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Broadcom Gains 10.8%

SP500

SP500 is moving higher as traders react to PMI reports. Manufacturing PMI declined from 49.7 in November to 48.3 in December, compared to analyst consensus of 49.8. Services PMI increased from 56.1 to 58.5, while analysts expected that it would drop to 55.7. The strong performance of the services sector provides significant support to the U.S. economy. Today, traders also had a chance to take a look at the NY Empire State Manufacturing Index report. The report showed that NY Empire State Manufacturing Index decreased from 31.20 in November to 0.20 in December, compared to analyst forecast of 12.

The nearest resistance level for SP500 is located in the 6090 – 6100 range. This resistance level has been tested several times and proved its strength. In case SP500 moves above the 6100 level, it will gain additional upside momentum and move towards 6150.

NASDAQ

NASDAQ tests new highs amid rising demand for tech stocks. Broadcom, which is up by 10.8%, is the best performer in the NASDAQ index today. The inclusion of MicroStrategy stock in the index and Bitcoin’s rally served as additional positive catalysts for NASDAQ.

NASDAQ managed to settle above the 22,000 level and continues to move higher. RSI has recently moved into the overbought territory, so the risks of a pullback are increasing.

Dow Jones

Dow Jones moved lower as Unitedhealth Group and Verizon were down by more than 3%. The pullback in NVIDIA stock put additional pressure on Dow Jones.

From the technical point of view, Dow Jones continues its attempts to settle below the support at 43,800 – 43,900. In case Dow Jones manages to settle below the 43,800 level, it will head towards the next support level at 43,200 – 43,300.  On the upside, Dow Jones needs to settle back above 44,000 to have a chance to gain sustainable upside momentum in the near term.

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