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Nasdaq, S&P 500, Dow: Fed Chair Powell’s Speech, PMI, and More, Set to Shape Market
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The SPX, DJIA, and NASDAQ all displayed bullish momentum; Fed Chair Powell's speech and upcoming PMI reports will significantly influence market direction.
In this article:
Key Insights
- Fed Chair Powell’s Monday speech could pivot financial market directions, highlighting interest rate speculations.
- Midweek Trade Balance and Crude Oil Inventories reports set to impact market sentiment, alongside FOMC speeches.
- SPX, DJIA, and NASDAQ forecasts point to bullish trends, with key levels indicating potential upward movements in coming sessions.
Quick Fundamental Outlook
The coming week brims with pivotal events likely to steer the financial markets, starting with Federal Reserve Chair Jerome Powell‘s address on Monday. This speech, set against a backdrop of market speculation about future interest rate paths, holds significant weight for investors parsing hints on monetary policy.
The same day unfolds with the release of the Final Services PMI and ISM Services PMI, indicators critical for gauging the service sector’s health amidst economic uncertainties. Notably, FOMC Member Bostic’s speech and the Loan Officer Survey will provide further insights into the Fed’s perspective and lending trends.
Tuesday’s schedule highlights the RCM/TIPP Economic Optimism index, offering a snapshot of consumer confidence, followed by FOMC Member Mester’s insights, adding depth to the week’s Fed communications.
Midweek activities include the Trade Balance report on Wednesday, offering a lens on the U.S.’s international trade dynamics. The day also features Crude Oil Inventories data, alongside multiple FOMC members’ speeches, underlining the Fed’s current stance on varied economic issues.
Thursday promises attention on Unemployment Claims, a key labor market metric, and Final Wholesale Inventories, providing clues on inventory levels amidst supply chain adjustments. The week also sees bond auctions and discussions on Mortgage Delinquencies, rounding off a week dense with data poised to influence market sentiment and investment strategies.
SPX SP500 Price Forecast
The S&P 500 (SPX) experienced a positive movement, marking a 1.38% increase to close at $4958.62 during the previous week. Analysis of the 4-hour chart reveals a pivot point at $4954.81, indicating a bullish momentum as it surpasses this critical level. The index faces immediate resistance at $4981.09, with subsequent hurdles at $5018.15 and $5045.10.
On the downside, support is established at $4929.20, $4899.56, and $4848.34. The 50-Day Exponential Moving Average (EMA) at $4820.15 underscore the bullish sentiment. The bullish breakout above $4954.81 suggests SPX might target Fibonacci extension levels, especially after achieving a 50% extension around $4956, pointing towards a potential upward trend.
The SPX is positioned for bullish trends above the $4954.81 mark, indicating a favorable outlook for future market movements.
Dow Price Forecast
The Dow Jones Industrial Average (DJIA) experienced a commendable rise of 1.43% over the past week, reaching a level of 38,654.43. This upward movement is highlighted by the surpassing of the pivotal resistance at $38,563.06, suggesting a bullish trend in the market.
The technical outlook identifies immediate resistance levels at $38,704.26, $38,823.25, and $38,944.28, indicating potential targets for continued upward momentum. Support levels are established at $38,371.85, $38,251.36, and $38,101.71, providing safety nets for any retracements.
The positioning of the 50-day ($38,212.67) and 200-day ($37,527.39) Exponential Moving Averages (EMAs) further underscore a bullish sentiment. The Dow’s ability to maintain its stance above the recently breached $38,563.06 threshold, accompanied by a bullish engulfing pattern, points towards a sustained positive trend.
NASDAQ Price Forecast
The NASDAQ Composite Index, showcased a weekly uptick of +1.12%, settled at 15,628.95 on Friday. Our technical analysis, grounded in a 4-hour chart, pinpoints a pivotal $15,637.91, corresponding to a 50% Fibonacci extension, suggesting a balanced market juncture.
Resistance escalates at $15,746.27, $15,904.66, reaching up to $16,107.50, delineating potential barriers for upward progression. Conversely, the index finds support at $15,523.98, with additional safety nets at $15,385.05 and $15,159.98, earmarking fallback positions. The 50-day Exponential Moving Average (EMA) at $15,162.62 and the 200-day EMA at $14,373.84 both affirm a bullish stance.
A clear breakout above $15,637.91, coupled with completion of a 50% Fibonacci extension, signals a robust bullish sentiment for the NASDAQ, indicating potential for further climbs. The NASDAQ exhibits a bullish trend above the $15,637.91 threshold, hinting at an optimistic trajectory for upcoming trading sessions.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Arslan Aliauthor
Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.
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