NASDAQ Index, SP500, Dow Jones Forecasts: Tech Rally Boosts US Indices as Market Approaches Weekend

Key Insights

• Tech sector’s surge led by semiconductor demand drives market optimism, lifting SPX, NASDAQ, and Dow indices.
• Strong U.S. job data and Fed’s rate strategy shape investor outlook, influencing major stock market indices.
• NASDAQ’s rise fueled by tech gains, with SPX and Dow showing resilience amid mixed economic signals.

Quick Fundamental Outlook

On Friday, the stock market displayed bullish signals as the technology sector, especially semiconductor companies, witnessed significant growth due to high demand for AI chips.

Taiwan Semiconductor Manufacturing Company’s shares jumped 6.46% following positive revenue projections, positively impacting the semiconductor industry. This bullish trend benefited other tech giants like Nvidia, Apple, and Microsoft, with respective stock increases.

Concurrently, the U.S. job market showed resilience with a drop in jobless claims, amidst Federal Reserve indications of delayed interest rate cuts.

In terms of technical indicators, the 50-Day Exponential Moving Average (EMA) is positioned at $4,716.84, above the pivot, while the 200-Day EMA lies lower at $4,536.39, offering a broader bullish outlook. The chart patterns reinforce this perspective, with an ascending triangle pattern indicating a continuing uptrend around the $4740 level.

Additionally, a bullish engulfing candle pattern corroborates a buying trend in the SPX. Concluding, the SPX is maintaining a bullish trajectory above the $4740 mark, suggesting the potential for further upward movement in the short term.

The Dow Jones Industrial Average on January 19 registered a modest gain of 0.29%, closing at $37,582.30. Key technical levels include a pivot point at $37,431.58, with immediate resistance at $37,702.85, followed by $37,817.71 and $37,954.56. Support levels are identified at $37,321.61, $37,126.02, and $37,020.17.

Technical indicators show the 50-day Exponential Moving Average (EMA) at $37,442.29, closely aligned with the pivot point, and the 200-day EMA at $36,968.76, suggesting an underlying bullish trend.

Chart analysis indicates a bullish pattern, highlighted by the Dow closing with two bullish engulfing candles around the $37,430 level, near the 50 EMA. In conclusion, the Dow Jones exhibits a bullish bias above the $37,430 level, indicating the potential for continued upward momentum in the short term.

NASDAQ Price Forecast

On January 19, the NASDAQ Composite showed a significant uptick, rising 1.47% to $15,055.65. This movement suggests a robust session for the index. The pivot point for the day is set at $14,916.48. Resistance levels are identified at $15,155.20, $15,360.15, and $15,527.25. On the support side, levels are marked at $14,711.57, $14,485.78, and $14,267.86.

From a technical perspective, the 50-day Exponential Moving Average (EMA) is at $14,765.80, and the 200-day EMA is at $14,111.87, both indicating a bullish sentiment in the medium term.

Chart analysis shows a symmetrical triangle pattern with resistance extending at the $15,055 level. A bullish breakout above this level could propel the NASDAQ towards the $15,155 or $15,360 levels. Conclusively, the NASDAQ is exhibiting bullish potential above the pivot point of $14,916.48, with the likelihood of testing higher resistance levels in the short term.

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