S&P 500 and NASDAQ Poised to Surge to Fresh Peaks in New Bull Market

On July 31 this year, the S&P 500 peaked at 4588.96 (as shown in the chart). Yesterday, it closed at 4547.38, aligning with the resistance level that links the March 2022 high with the current closing price.

SP 500 set to consolidate first and then reach new highs

There's a solid possibility to climb back to this year's high, nearing Ed Yardeni’s projected year-end target of 4600, by overcoming the current resistance. Reflecting, Yardeni’s year-end estimate might have been somewhat cautious.

In my opinion, it is more likely that the S&P 500 could escalate to match or surpass the ATH, potentially by the end of this year or in the early months of next year.

First resistance: 4.550

Second resistance: 4.600

Third resistance: 4.740 - 4.750

Fourth resistance: 4.800 - 4.820

Nasdaq 100 is set to consolidate first (on the back of Nvidia earnings??) and then reach new highs.

The Nasdaq 100 Stock Index concluded trading at its highest point in nearly two years, buoyed by a surge in technology stocks fueled by rising expectations for artificial intelligence advancements and confidence in the Federal Reserve's ability to achieve a smooth economic deceleration.

On Monday, the index rose by 1.2%, reaching 16,027, marking its peak since January 2022. Semiconductor companies have been pivotal in this recent uptick, with Advanced Micro Devices Inc. and Intel Corp. spearheading an 11% increase this month.

This surge brings the index within 3% of its November 2021 high. With a nearly 47% increase since the start of the year, the Nasdaq 100's performance is most robust since the rapid growth following the pandemic in 2020.

First resistance: 16.030 - 16.050

Second resistance: 16.485 - 16.500

Third resistance: 16.550 - 16.650

Fourth resistance: 16.750 - 16.850

Nvidia as catalyst?

Nvidia's stock reached a record-breaking peak, climbing 2.25% to settle at an unprecedented $504.09 just before today's earnings announcement (after market close).

This surge elevates Nvidia's market value to $1.2 trillion, surpassing that of both Meta and Tesla. The stock is up 16% in three months but up 23% in November.

This milestone is a reason for investor optimism: projections from LSEG suggest that the company’s revenue for its fiscal fourth quarter is expected to see a staggering 200% growth.

The cart looks a bit toppy to me. A good earnings report may result in a 10 percent move up, which I would use to lighten up a bit on Nvidia shares. A lousy report may lead the shares to fall to the 400 USD level again.

A new surprise by magic Jay (Jensen Huang) during the earnings call may lead me to change my stance ( I know this is waffling, but I have learned to listen carefully when Jensen speaks. So, I will be on Quartr.com after 4.00 p.m. ET to follow carefully.