NASDAQ Index, S&P 500, Dow Jones Analysis – NASDAQ Climbs Back, Dow Jones Supported By Salesforce Performance

Key Insights

• Treasury yields settled above the 4.00% level. 
• NASDAQ moved above the 11,900 level. 
• Dow Jones gained ground after receiving strong support in the 32,500 – 32,800 area. 

S&P 500

S&P 500 rebounded from session lows as traders bought stocks after the multi-day pullback.

Today, traders focused on the developments in Treasury markets. The yield of 10-year Treasuries settled above the important 4.00% level and made an attempt to settle above 4.08%.

Rising Treasury yields are bearish for stocks, but it looks that some traders were willing to use the recent pullback as an opportunity to increase their long positions.

Salesforce gained 11% after beating analyst estimates and increasing its share buyback program.  Tesla was among the biggest losers in the S&P 500 today as its Investor Day missed market’s expectations.

From a big picture point of view, the key question is whether traders will be able to ignore the developments in government bond markets in case Treasury yields continue to move higher.

NASDAQ

NASDAQ climbed back above the 11,900 level despite rising Treasury yields. It looks that profit-taking and dip-buying were the main drivers for this move.

In order to have a chance to develop sustainable upside momentum, NASDAQ needs to settle back above the 50 EMA at 11,965. If NASDAQ settles above the 50 EMA, it will head towards the next resistance level at the 20 EMA at 12,145.

Dow Jones

Dow Jones gained some ground in today trading session, driven by the strong performance of Salesforce stock.

Dow Jones received strong support in the 32,500 – 32,800 area, which is a welcome sign for the bulls. A move above the 33,000 level will push Dow Jones towards the resistance level at 33,200.

For a look at all of today’s economic events, check out our economic calendar.