NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground As Traders Stay Bullish Ahead Of Fed Decision

SP500

SP500 gains some ground ahead of the Fed decision, which will be released soon. Analysts expect that Fed will cut the federal funds rate from 4.75% to 4.50%. Traders should note that Fed will also release FOMC Economic Projections, which will have a material impact on market dynamics. Fed Chair Powell’s comments during the press conference will also serve as an important catalyst. Today, traders had a chance to take a look at Housing Starts and Building Permits reports for November. Housing Starts declined by 1.8% month-over-month, compared to analyst consensus of +2.3%. Building Permits increased by 6.1%, compared to analyst forecast of +1.3%. Tech stocks were the only leaders in today’s trading session, while most market sectors have found themselves under pressure.

The technical picture remains unchanged as SP500 needs to settle above the strong resistance at 6090 – 6100 to gain additional upside momentum.

NASDAQ

NASDAQ managed to gain some ground as demand for tech stocks remained strong ahead of Fed decision. NVIDIA, which was up by 4.2%, was the biggest gainer in the NASDAQ index today.

In case NASDAQ climbs above the resistance at 21,950 – 22,000, it will head towards the 22,500 level. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

Dow Jones

Dow Jones has started to rebound from after the strong pullback as traders prepared for Fed decision. The strong performance of NVIDIA stock provided material support to Dow Jones index today.

In case Dow Jones manages to settle above the 43,600 level, it will head towards the resistance level at 43,800 – 43,900. On the support side, a move below the 43,500 level will push Dow Jones towards the nearest support, which is located in the 43,200 – 43,300 range.

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