Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Dow Jones, S&P 500, Nasdaq 100 Reverse Off Multi-Month Highs: What's Next?

By Forex.com (Matthew Weller)Stock MarketsNov 30, 2023 01:47AM ET
www.investing.com/analysis/dow-jones-sp-500-nasdaq-100-reverse-off-multimonth-highs-whats-next-200644002
Dow Jones, S&P 500, Nasdaq 100 Reverse Off Multi-Month Highs: What's Next?
By Forex.com (Matthew Weller)   |  Nov 30, 2023 01:47AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
NDX
+1.44%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
+0.80%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
+0.23%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
  • Major US indices are winding down a tremendous month as interest rates have fallen amidst expectations that the Fed is done raising its policy rate.
  • The DJIA, S&P 500, and Nasdaq 100 are all consolidating near multi-month or year-to-date highs.
  • Continued consolidation would be seen as a bullish development given the potential for month-end profit taking around the US Core PCE report tomorrow.

After a 3-month losing streak, all three major US indices are on track to close November with their best month in over a year.

Ironically, the clearest catalyst for the move has been deteriorating US economic data, which has, in turn, convinced traders that the Federal Reserve is done raising its policy rate and led to a broad decline in interest rates across the curve; in addition to lowering interest expenses for companies, lower interest rates make stocks relatively more attractive than bonds, leading to equity market inflows and driving index prices higher.

Below, we highlight the key levels and trends to watch on the three biggest US indices.

Dow Jones Technical Analysis – DJIA Daily Chart
DJIA-Daily Chart
DJIA-Daily Chart

Source: TradingView, StoneX

Since bottoming the day before Halloween, the oldest US index has rallied nearly 10% in a straight line, with only six, small down days in more than four weeks. Now, the Dow Jones Industrial Average is hovering in the mid-35,000s, less than 1% below year-to-date highs and only about 4% from the all-time record high set in early January 2022.

After such an impressive month, bulls are showing signs of losing steam, so a near-term dip appears more likely than not. That said, the longer-term trend will remain to the topside as long as the previous resistance at 35,000 holds as support. Looking above current prices, the next resistance zone to watch is the 35,700-800 zone, followed by the record highs at 37,000

S&P 500 Technical Analysis – SPX Daily Chart
S&P 500-Daily Chart
S&P 500-Daily Chart

Source: TradingView, StoneX

Looking at the broader S&P 500, the picture is similar. The index has rallied consistently throughout November, taking it to within striking distance of the 2024 highs around 4600. Encouragingly for the bulls, the index has held above its previous multi-month high at 4540, signaling acceptance on the part of traders and opening the door for another leg higher. As long as that level holds, the bullish bias remains intact for a move up toward resistance at 4600 or 4635 next.

Nasdaq 100 Technical Analysis – NDX Daily Chart
NASDAQ 100-Daily Chart
NASDAQ 100-Daily Chart

Source: TradingView, StoneX

The tech-focused Nasdaq 100 has been by far the strongest US index all year long. As the above chart shows, NDX broke out to a fresh 2023 high earlier this month and is now consolidating near 16,000. Much like with the S&P 500, the sideways consolidation at the highs has given prices a chance to correct through time, rather than through price, and the longer the Nasdaq 100 holds above 15,900, the more likely a bullish continuation toward the record highs near 16,750 becomes.

“No news is good news” as they say, and if US indices continue to consolidate around current levels, we could be looking at a situation where “no price action is good price action.”

Original Post

Dow Jones, S&P 500, Nasdaq 100 Reverse Off Multi-Month Highs: What's Next?
 

Related Articles

Dow Jones, S&P 500, Nasdaq 100 Reverse Off Multi-Month Highs: What's Next?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Aung Zin
Aung Zin Nov 30, 2023 2:52AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email