NASDAQ Index, SP500, Dow Jones Analysis – NASDAQ Rebounds As Traders Buy Tech Stocks

Key Insights

• SP500 rebounded towards the 4380 level. 
• NASDAQ moved back to the 15,000 level amid rising demand for tech stocks. 
• Dow Jones was mostly flat in choppy trading. 

SP500

SP500  found support near the 4350 level and rebounded towards 4380. Today, traders had a chance to take a look at the Initial Jobless Claims report, which indicated that 264,000 Americans filed for unemployment benefits in a week. Analysts expected Initial Jobless Claims of 260,000. Existing Home Sales increased by 0.2% month-over-month in May, compared to analyst consensus of -0.2%. Treasury yields continued to move higher as traders focused on the hawkish comments from Fed Chair Powell. However, the market does not believe that Fed would be able to raise rates by 50 bps, so major indices have moved away from recent lows.

From the technical point of view, SP500 is trying to gain upside momentum after the lengthy pullback. The support area in the 4335 – 4350 showed its strength, as buyers increased their purchases when SP500 touched the 4360 level. A move above the 50 MA will push SP500 towards the 4400 level.

NASDAQ

NASDAQ rebounds as traders use the recent pullback as an opportunity to establish positions in tech stocks. The AI boom remains the key bullish catalyst for NASDAQ.

NASDAQ did not manage to test the strong support in the 14,550 – 14,680 range and moved back towards the 15,000 level. A move above this level will open the way to the test of the resistance in the 15,200 – 15,300 range.

Dow Jones

Dow Jones rebounds from the strong support in the 33,785 – 33,875 range. At this point, the rebound is not strong, and it remains to be seen whether Dow Jones will be able to gain sustainable momentum.

The near-term trend stays bearish, and Dow Jones needs to get back to the 50 MA to show that it has a chance to gain sustainable momentum. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

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