NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests New Highs As Rally Continues

SP500

SP500 made an attempt to settle above the 6100 level as traders reacted to the better-than-expected Non Farm Payrolls report. The report showed that the U.S. economy added 227,000 jobs in November, compared to analyst forecast of 200,000. Unemployment Rate increased from 4.1% in October to 4.2% in November, in line with analyst consensus. Today, traders also had a chance to take a look at Michigan Consumer Sentiment report for December. The report indicated that Consumer Sentiment increased from 71.8 to 74.0, compared to analyst forecast of 73. Strong job market data and rising consumer sentiment provided support to SP500. However, SP500 did not manage to settle above the 6100 level, and it looks that some traders decided to take profits off the table near historic highs. It should be noted that most market sectors moved lower in today’s trading session. Energy stocks were among the worst performers as traders focused on the pullback in the oil markets.

In case SP500 fails to settle above the nearest resistance level at 6090 – 6100, it will move towards the 50 MA at 6040.

NASDAQ

NASDAQ tested new highs amid rising demand for tech stocks. Traders remain bullish on the sector after the release of encouraging job market data.

From the technical point of view, NASDAQ climbed above the 21,500 level and is heading towards the 22,000 level. RSI is in the overbought territory, so the risks of a pullback are increasing.

Dow Jones

Dow Jones is moving lower as traders continue to take profits after an unsuccessful attempt to settle above the strong resistance at 44,900 – 45,000.

The nearest support level for Dow Jones is located in the 44,400 – 44,500 range. If Dow Jones manages to settle below the 44,400 level, it will head towards the next support level, which is located in the 43,800 – 43,900 range.

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