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Dow Jones, Nasdaq, S&P 500 weekly preview: Testing key resistance

Published Nov 27, 2023 08:22AM ET
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© Reuters. Dow Jones, Nasdaq, S&P 500 weekly preview: Testing key resistance
 
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S&P 500 (SPX) recorded the fourth consecutive weekly close higher last week, ultimately closing at the highest level since July. It also marks the longest weekly run since June.

The benchmark U.S. stock market index is now testing key resistance near 4560, which is shaped by the trend line that connects the record high and 2023 high.

Similarly, the Dow Jones Industrial Average (DJI) added 1.3% to also hit the downward trend line that connects recent swing highs. On the other hand, the Nasdaq Composite Index (IXIC) rose 0.9% but still managed to secure a weekly close above the key trendline, which will now provide support if the pullback occurs.

Looking forward to this week, the Consumer Confidence report is out on Tuesday. On Wednesday, the Q3 GDP reading is expected to be released. A set of inflation-focused data is set to be out on Thursday, including personal income data for October. Manufacturing PMI and ISM manufacturing data is scheduled for Friday.

Fed’s speakers, including Governor Waller and Presidents Goolsbee and Mester, are all scheduled to speak this week.

On the earnings front, the most notable reporters include Zscaler (NASDAQ:ZS), Intuit (NASDAQ:INTU), Workday (NASDAQ:WDAY), Crowdstrike (CRWD), Salesforce (NYSE:CRM), and Snowflake (NYSE:SNOW).

The list also includes Dollar Tree (NASDAQ:DLTR), Dell Technologies (NYSE:DELL), Marvel (MRVL), Kroger (NYSE:KR), Ulta Beauty (NASDAQ:ULTA), and UiPath (NYSE:PATH).

What analysts are saying about US stocks

Analysts at Oppenheimer: “Our feel is that bearish investors that largely missed S&P 500 gains in 2023 are gravitating towards the Russell 2000 in belief there’s greater potential in lagging benchmarks—we disagree. We maintain our preference for the S&P 500 given its weighting to Technology.”

Analysts at BofA: “We expect CTA buying in the S&P 500 [this] week as the index has gained greater than 1% in each of the last four weeks turning its trend strength positive for the first time since early October. Our model initiated a long position [the] past week that will rapidly increase along any price path [this] week.”

Analysts at Citi: “More S&P 500 companies are expected to positively contribute to index-level growth, fewer are projected to be significant detractors, and underlying EPS growth variation is set to decline… Ultimately, it supports our view that S&P 500 EPS can turn higher even as macro concerns linger.”

Analysts at BTIG: “The Short-term Volatility Index (VIX9D) closed below 10 last week, the lowest reading since Jan. 2020. Volatility is a funny thing because it is often mean reverting, unless we are in a new regime… While we continue to expect some rotation into laggards, we don't think we are in a new regime and therefore as we head into December, a sub-13 VIX is likely a yellow light.”

Analysts at Roth MKM: “As we enter the last few trading days of November, we find the S&P 500 could put in its best monthly gains of the year. Seasonal tailwinds often blow into December. The question becomes, can the indices hold their ground into year-end… We found when discretionary experienced an extremely strong November, similar to this month, positive returns were likely to follow in December.”

Dow Jones, Nasdaq, S&P 500 weekly preview: Testing key resistance
 

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Comments (4)
Ac Tektrader
Ac Tektrader Nov 27, 2023 2:36PM ET
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Daniel, debt in this country has increased since 1776 the country has used debt to create the largest economy on the planet.. as long as that debt continues to create economic growth there shouldn't be any problems with our economy over the long haul.taxation of the corporations must be brought back in line with historical norms. Covd 19, the tax and spending policies of the previous Trump Administration, and their allies in Congress, are responsible for much of this debt and inflation problem we are facing now. One result, one trillion+ every year since 2018 in lost revenue, because of the unnecessary Trump corporate tax cuts...the fed and the Democrats now charged with cleaning up the economic mess that covid and the Trump Administration created., and from the numbers, at least so far, they have done a good job..
Daniel Cosma
Daniel Cosma Nov 27, 2023 1:00PM ET
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The problem is since 1977, the Fed is tasked with a dual mandate; full employment & price stability. Full employment creates inflation and low inflation requires some level of unemployment. Return the Fed to a single task of price stability. I'd go one step further, Iimit the Fed's ability to grow the money supply to growth in GDP. The Fed's policies created today's inflation.
Daniel Cosma
Daniel Cosma Nov 27, 2023 12:58PM ET
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At some point, you have to take the training wheels off and let bad economic (fiscal) policy run its course; if people had to suffer the consequences of bad election decisions, they might vote smarter. Eventually if you keep inflating a balloon (money supply) it will pop. Deficits and debt cannot be increased indefinitely without consequence. Which is more painful, recessions or a currency collapse; anyone who's lived under socialism can tell you that it is the latter.
محمد صالح اليأس عبده
محمد صالح اليأس عبده Nov 27, 2023 10:57AM ET
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Im learn ing but lateron I will write my taught s
 
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