NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally Ahead Of Christmas

SP500

SP500 rallied as traders remained bullish on Christmas Eve. There were no important economic reports scheduled to be released today, and traders focused on general market sentiment in holiday-thinned trade. The rally was broad, and all market sectors moved higher in today’s trading session. Consumer cyclical and financial stocks were among the biggest gainers today. From a big picture point of view, the market has fully recovered after the recent pullback, which was triggered by the changes in Fed economic projections.

In case SP500 stays above the 6050 level, it will head towards the strong resistance level at 6090 – 6100. A move above the 6100 level will provide SP500 with a chance to gain additional upside momentum.

NASDAQ

NASDAQ moved higher amid strong demand for tech stocks. Tesla, which was up by 7.99%, was the biggest gainer in the NASDAQ index today. Traders used the recent pullback as an opportunity to buy Tesla stock at attractive levels.

From the technical point of view, NASDAQ has recently managed to settle above the resistance at 21,600 – 21,650. RSI remains in the moderate territory, so there is enough room to gain additional momentum in case the right catalysts emerge. If NASDAQ climbs above the 21,800 level, it will head towards the resistance at 22,050 – 22,100.

Dow Jones

Dow Jones gained ground amid broad rally in the equity markets. The rally was led by Walmart, which gained 2.3% in today’s trading session.

The nearest resistance level for Dow Jones is located in the 43,200 – 43,300 range. A successful test of this level will open the way to the test of the resistance at 43,900 – 44,000. On the support side, a move below the 43,000 level will push Dow Jones towards the support at 42,700 – 42,800.

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