S&P 500: A Balancing Act of Bullish and Neutral Tendencies
Despite showing early signs of consolidation, the S&P 500 retains a bullish momentum. Recent CPI data indicating a slowdown in inflation has softened the US dollar, bolstering equities. With markets leaning towards rate cuts in 2024, a contradiction to the Federal Reserve’s stance, we could see the index test the 4540 level, eyeing the year’s high at 4607. However, cautious traders should note potential introspection and profit-taking activities, especially with the RSI nearing overbought conditions, placing the support at 4450.
Nasdaq 100: The Bullish Leap
Mirroring a broader bullish sentiment in financial markets, the Nasdaq 100 has shown significant gains, attributed to easing financial conditions marked by falling US bond yields. Overcoming previous resistance at 15,285, the index is now challenging its yearly high at 15,932. This upward trajectory is reinforced by market anticipation of rate cuts, exceeding the Federal Reserve’s projections. As the RSI approaches overbought territory, traders should watch the 15,285 marks for support.
FTSE 100: Lagging but Steady
Contrasting its US counterparts, the FTSE 100’s growth has been modest, partly due to falling oil prices impacting the energy sector and a scarcity of tech stocks. Despite these challenges, the index managed to rise over 1.2% recently, surpassing 7504. With the UK Autumn Statement and OBR forecasts on the horizon, we expect some volatility. Investors should keep an eye on the support levels at 7420 and 7305.
