NASDAQ Index, SP500, Dow Jones Forecasts: Stocks Defy CPI Headwinds, Eyes on SEC’s Bitcoin ETF Approval

By:

Published: Jan 12, 2024, 12:46 GMT+00:00

In a day of mixed signals, the SP500, NASDAQ, and Dow Jones edged higher, defying a perplexing inflation report and corporate earnings jitters.

Mixed CPI report sees U.S. indices rise, with tech stocks volatile following Alphabet’s AI investment news.
Citigroup and KB Home stocks fall on financial setbacks, contrasting with the broader market’s gains.
SEC’s nod to Bitcoin ETFs opens new channels for crypto investment, potentially influencing tech-heavy NASDAQ.

Quick Fundamental Outlook

U.S. stocks, including the SPX, NASDAQ, and DJIA, closed higher on Thursday despite a complex U.S. CPI report for December indicating higher annual inflation at 3.4% but a dip in core inflation to 3.9%.

This mix suggests the Fed might still lean towards rate cuts, positively impacting equities. Citigroup’s stock took a hit due to significant currency conversion losses, while KB Home’s shares dropped after reporting a decline in property selling prices.

Alphabet saw an initial stock boost from reports of cost cuts and AI investment but later aligned with the general market downtrend. Meanwhile, the SEC’s approval of Bitcoin ETFs introduces new investment avenues in cryptocurrencies.

SPX SP500 Price Forecast

SPX SP500 – Chart

On January 12, the S&P 500 (SPX) marginally declined by 0.07%, closing at 4780.23. The index currently hovers around its pivot point of $4,780, facing immediate resistance at $4,795, with further barriers at $4,819 and $4,844. Support levels are established at $4,738, $4,708, and $4,670.

The 50-Day Exponential Moving Average (EMA) is at $4,700, and the 200-Day EMA stands at $4,517, both indicating a potential for upward momentum. The SPX displays an ascending triangle pattern, signaling a bullish bias with resistance at 4794 and support around 4738.

A break above the $4795 level could instigate a buying trend, suggesting traders to closely watch this threshold for signs of continued bullish movement.

Dow Price Forecast

DJIA Chart

The Dow Jones Industrial Average (DJIA) faced a minor retracement, closing at 37,549.27, down by 0.40%. The 4-hour chart points to a pivot at $37,800, with immediate resistance near $37,800 and further resistance observed at $37,850 and $37,900.

Support lies at $37,500, then $37,450 and $37,400. The 50-Day Exponential Moving Average (EMA) rests at $37,653.52, while the 200-Day EMA is set at $36,824.46, indicating the index is currently trading in between these averages.

Chart analysis shows an ascending triangle formation with resistance at $37,800; a break above this level could signal bullish intent.

NASDAQ Price Forecast

NASDAQ – Chart

The NASDAQ index edged higher on January 12, recording a gain of 0.17% at a closing price of 16820.90. The four-hour chart analysis reveals a pivot point at $14,801, with the index currently facing immediate resistance at $15,020.

Subsequent resistance levels are identified at $15,147 and $15,360. Support levels are found at $14,639, with further potential support at $14,486 and $14,268. The index is trading above the 50-Day EMA of $14,704, suggesting a bullish trend, and well above the 200-Day EMA of $14,043, reinforcing this outlook.

A supportive upward trendline around $14,638 and resistance near $15,000 indicate a possible bullish continuation above $14,800.

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

About the Author

Arslan Aliauthor

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.