NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As PCE Inflation Cools In November

SP500

SP500 rallied as traders reacted to PCE Price Index report, which showed that PCE Price Index increased by just 0.1% month-over-month in November. Core PCE Price Index grew by 0.1%, compared to analyst forecast of 0.2%. The weaker-than-expected Personal Income and Personal Spending reports have also provided support to SP500 as traders bet that Fed could be less hawkish. Personal Income increased by 0.3% month-over-month in November, while Personal Spending grew by 0.4%. Today, traders also had a chance to take a look at the final reading of Michigan Consumer Sentiment report for December. The report indicated that Michigan Consumer Sentiment increased from 71.8 in November to 74.0 in December, in line with analyst expectations. It should be noted that the rally was broad, and all market sectors moved higher in today’s trading session.

Currently, SP500 is trying to settle above the resistance at 5980 – 5990. In case this attempt is successful, SP500 will head towards the 50 MA at 6023.

NASDAQ

NASDAQ rebounded as traders used the recent sell-off as an opportunity to increase their long positions at attractive levels.

If NASDAQ manages to settle above the 21,400 level, it will head towards the next resistance level at 21,600 – 21,650. RSI remains in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones

Dow Jones gained ground amid broad rally in the equity markets. Goldman Sachs and NVIDIA were the biggest gainers in the Dow Jones index today.

From the technical point of view, Dow Jones moved above the resistance at 42,700 – 42,800 and made an attempt to settle above the next resistance level at 43,200 – 43,300. In case Dow Jones manages to climb back above 43,000, it will get to another test of the resistance at 43,200 – 43,300.

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