S&P 500 Reaches for Record, Nasdaq 100 Hits New Highs

S&P 500 approaches January 2022 record high; Nasdaq 100 hits new all-time highs, eyes 17,000 amid economic data releases.

Undergoing a remarkable surge, the S&P 500 is positioning itself to achieve its ninth consecutive week of gains and record its fifth consecutive positive day. A successful US Treasury auction on Wednesday was pivotal in pushing yields lower. Consequently, advancing rate cut expectations to March of the following year. The index is on the verge of surpassing its record high set in January 2022 at 4,817, exhibiting resilience despite its most overbought status since 1991. Notably, nearly 50% of S&P 500 stocks are trading above the 70% overbought level on their 14-day simple moving averages (SMA).

S&P 500 Reaches for Record, Nasdaq 100 Hits New Highs

While potential setbacks may encounter support around last week’s high at 4,778, additional reinforcement lies between the November and mid-December 2021 highs at 4,752 to 4,743.

Nasdaq 100 Achieves New Record Highs in Its Ninth Consecutive Week of Gains

The Nasdaq 100 continues its remarkable rally since late October, marking its ninth consecutive week of gains. As it approaches the minor psychological threshold of 17,000, there is anticipation that this level may act as resistance in the short term.

Various economic indicators, such as the US goods trade balance, initial jobless claims, wholesale inventories, pending home sales, and EIA crude oil inventories, will undergo release. These data points may introduce an element of volatility to stock indices and the oil price, particularly amidst the low-volume end-of-year trading period.

Investors can identify potential support for the Nasdaq 100 around last week’s high of 16,863, highlighting the resilience and upward momentum in the current market conditions.

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