NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Tests The 4800 Level

Key Insights

• SP500 remains stuck below the 4800 level amid a lack of strong catalysts. 
• NASDAQ gained some ground as demand for ship stocks remained strong. 
• Dow Jones tested new highs despite Boeing’s pullback. 

SP500

SP500 continues its attempts to settle above the 4800 level as traders react to economic reports. Initial Jobless Claims report indicated that 218,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims increased from 1.861 million to 1.875 million. Pending Home Sales remained unchanged in November, while analysts expected that they would increase by 1%. Treasury yields moved away from multi-month lows as bond traders took some profits off the table ahead of the new year. Meanwhile, U.S. dollar gained ground against a broad basket of currencies. These moves did not have a material impact on SP500 dynamics as traders remained mostly bullish. However, energy stocks found themselves under pressure as traders focused on the pullback in the oil markets. It should be noted that trading stays calm as many traders enjoy their vacations.

If SP500 settles above the 4800 level, it will move towards the next resistance at 4810 – 4820.

NASDAQ

NASDAQ is slowly moving away from recent highs as traders are not ready for big moves ahead of the new year. Tesla, which is down by 1.7%, is the biggest loser in the NASDAQ index today. Advanced Micro Devices gained 2.5% as demand for chipmakers remained strong.

From the technical point of view, NASDAQ needs to settle above the 17,000 level to have a chance to gain additional upside momentum. The nearest support level for NASDAQ is located in the 16,750 – 16,800 range.

Dow Jones

Dow Jones tested new highs in quiet trading. Most stocks in the index were moving higher but Boeing found itself under pressure after FAA noted that 737 MAX planes would be inspected for loose bolts.

The technical picture remains bullish. RSI stays in the moderate territory, so Dow Jones has a good chance to gain additional upside momentum in the upcoming trading sessions.

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