NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests Historic Highs As Traders Focus On Powell’s Comments

SP500

SP500 tests new highs as traders focus on economic data and Powell’s speech. Powell said that the U.S. economy remained strong and that he was satisfied with the current stance of monetary policy. He added that unemployment remained low. According to Powell, Fed is trying to find balance between its inflation target and the condition of the labor market. Today, traders also focused on the ISM Services PMI report, which showed that ISM Services PMI declined from 56 in October to 52.1 in November, compared to analyst forecast of 55.5. ADP Employment Change report showed that private businesses added 146,000 jobs in November, mostly in line with the analyst forecast of 150,000. Factory Orders increased by 0.2% month-over-month in October, compared to analyst consensus of +0.2%. Treasury yields moved lower as bond traders bet that Fed will be less hawkish than previously expected. This move provided additional support to SP500 and other major indices.

From the technical point of view, SP500 is moving towards the 6100 level. RSI is close to the overbought territory, but there is enough room to gain additional upside momentum in the near term.

NASDAQ

NASDAQ continues to move higher after the successful test of the resistance at 21,100 – 21,200. Marvell Technology, which is up by 24.2%, is the best performer in the NASDAQ index today. The stock rallied as traders reacted to the strong earnings report.

A move above the 21,500 level will open the way to the test of the 22,000 level. It should be noted that NASDAQ is overbought, so the risks of a pullback are increasing.

Dow Jones

Dow Jones remains stuck near the key resistance level at 44,900 – 45,000. The strong performance of Salesforce stock, which is up by 9%, did not push Dow Jones above the psychologically important 45,000 level.

If Dow Jones manages to settle above 45,000, it will have a good chance to gain significant upside momentum.

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