NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Test New Highs Ahead Of CPI Data

Key Insights

• SP500 climbed above the 4600 level as traders were bullish ahead of the important CPI reports. 
• NASDAQ tested new highs as traders ignored the pullback in mega cap stocks. 
• Dow Jones moved towards the resistance at 36,350 – 36,500.

SP500

SP500 tests new highs as traders prepare for CPI reports, which will be released tomorrow. Analysts expect that Inflation Rate declined from 3.2% in October to 3.1% in November, while Core Inflation Rate remained unchanged at 4%. The reports will likely have a significant impact on market dynamics as they will be released ahead of the Fed decision. Today’s move is broad, and the majority of market segments are moving higher. Traders bet that inflation will continue to drop so Fed will start cutting rates in the first half of the next year, which will be bullish for stocks.

Currently, SP500 is trying to stay above the key resistance level at 4575 – 4600. In case this attempt is successful, SP500 will head towards the next resistance, which is located in the 4730 – 4750 range.

NASDAQ

NASDAQ is moving higher despite the pullbacks in mega cap stocks. Meta, Tesla, NVIDIA, Alphabet, Apple, and Microsoft are down by more than 1.5% as traders take some money off the table ahead of CPI reports and the Fed decision.

From the technical point of view, NASDAQ managed to settle above the 16,000 level and gained additional upside momentum. RSI remains in the moderate territory, so NASDAQ has a good chance to test the next resistance at 16,400 – 16,500.

Dow Jones

Dow Jones gains ground as traders focus on general bullish sentiment. Intel, which is up by more than 4%, is the biggest gainer in the Dow Jones index today.

Dow Jones needs to settle above the resistance at 36,350 – 36,500 to gain additional momentum. Traders should note that RSI has already moved into the overbought territory but it remains below the recent highs that were reached at the beginning of December.

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