NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests Historic Highs As CPI Meets Estimates

By:

Vladimir Zernov

Published: Dec 11, 2024, 20:06 GMT+00:00

Key Points:

SP500 moved back towards the key resistance at 6090 - 6100.
NASDAQ tested new highs as traders bet on dovish Fed.
Dow Jones was flat amid falling demand for defensive stocks.

SP500

SP500 111224 4h Chart

SP500 rallied as traders reacted to U.S. inflation reports. Inflation Rate increased from 2.6% in October to 2.7% in November, in line with analyst forecast. Core Inflation Rate remained unchanged at 3.3%. Traders feared that inflation could exceed analyst expectations and force the Fed to be more hawkish. Interestingly, Treasury yields moved higher, but this move did not put pressure on SP500. The rally is broad, and most market sectors moved higher in today’s trading session. Healthcare, real estate and utilities stocks found themselves under pressure as demand for defensive sectors declined.

SP500 has recently climbed back above the 50 MA at 6065 and is trying to settle above the resistance level at 6090 – 6100. In case this attempt is successful, SP500 will move towards the 6150 level. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ

NASDAQ 111224 4h Chart

NASDAQ tested new highs as demand for tech stocks increased after the release of U.S. inflation data. Traders remain bullish and increase their long positions. Broadcom, Arm Holdings, and Tesla were the biggest gainers in the NASDAQ index today.

NASDAQ moved above the resistance at 21,600 – 21,700 and tests historic highs. A move above the 21,800 level will push NASDAQ towards the 22,000 level.

Dow Jones

Dow Jones 111224 4h Chart

Dow Jones is flat as demand for defensive sectors declines. The strong pullback in Unitedhealth Group stock, which is down by 4.9%, put material pressure on the Dow Jones index. Johnson & Johnson and Merck were among the biggest losers in the Dow Jones index today.

From the technical point of view, Dow Jones needs to settle back above the resistance at 44,400 – 44,500 to have a chance to gain upside momentum in the near term. On the support side, a move below the 44,100 level will push Dow Jones towards the support at 43,800 – 43,900.

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

About the Author

Vladimir Zernovauthor

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.