NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain More Ground As Rally Continues

Key Insights

• SP500 made an attempt to settle above the 4790 level. 
• NASDAQ moved higher, supported by the strong performance of Alphabet stock. 
• Dow Jones tried to settle above the 37,600 level in quiet trading.

SP500

SP500 tested new highs as traders reacted to economic data. CB Consumer Confidence improved from 101 in November to 110.7 in December, compared to analyst consensus of 104. Existing Home Sales increased by 0.8% month-over-month, while analysts expected that they would decline by 0.5%. Treasury yields continued to move lower as traders remained focused on dovish Fed. Rate cut expectations remain the key driver for SP500. In addition, it looks that some traders have prematurely shorted the market when SP500 was near the 4600 level, so the current rally is partially driven by short-covering.

Not surprisingly, RSI remains in the overbought territory. However, there’s no real pullback, and any attempt to move lower is quickly bought by traders who want to increase their long positions.

NASDAQ

NASDAQ gains some ground as traders stay optimistic. Alphabet, which is up by 2.8%, is among the biggest gainers in the NASDAQ index today. Traders remain focused on the potential of AI.

Technically, NASDAQ’s rally is slowing down, but it remains to be seen whether the index is ready for a pullback.

Dow Jones

Dow Jones gained some ground as the rally continued. Today’s trading session was extremely calm. There are no material gainers or losers in the Dow Jones index, and it looks that traders are waiting for strong catalysts that could provide additional support to the index.

In case Dow Jones stays above the 37,400 – 37,500 level, it will gain additional upside momentum and test new highs.

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