Market Analysis Summary
Overview
The article discusses the current state of major U.S. stock indices, including the S&P 500, NASDAQ, and Dow Jones, as traders prepare for upcoming inflation data. The analysis highlights key resistance levels and market dynamics influenced by economic indicators.
S&P 500 Analysis
The S&P 500 is attempting to break above the resistance level of 6280-6290. Analysts predict that the inflation rate will rise from 2.4% in May to 2.7% in June, with core inflation expected to increase from 2.8% to 2.9%. These reports are anticipated to significantly impact market sentiment and the Federal Reserve's policy outlook. Currently, the S&P 500 is showing positive movement, although sectors such as basic materials and energy are under pressure due to declines in oil and platinum prices.
Technically, for the S&P 500 to gain further momentum, it needs to settle above the 6290 level, which could lead to a target of 6350.
NASDAQ Analysis
The NASDAQ index is testing resistance at 22,850-22,900, with traders remaining optimistic ahead of the inflation data release. There is a prevailing sentiment that the Federal Reserve may soon begin cutting interest rates, as the inflationary effects of tariffs have been less severe than anticipated. A successful move above 22,900 could propel the NASDAQ towards 23,500, while a drop below the 50-day moving average at 22,736 could lead to testing support at 22,550.
Dow Jones Analysis
The Dow Jones has gained some traction, with Boeing being a notable contributor, rising by 1.5%. The index is currently trying to establish itself above the 50-day moving average at 44,444. If this level is successfully breached, the next resistance is expected in the 44,600-44,700 range.
Conclusion
Overall, the article emphasizes the cautious optimism in the markets as traders await critical inflation data that could influence Federal Reserve policy. The technical indicators suggest potential upward movements for the S&P 500, NASDAQ, and Dow Jones, contingent on breaking through key resistance levels.