NASDAQ Index, SP500, Dow Jones Analysis – NASDAQ Tests Yearly Highs As Microsoft Rallies

Key Insights

• SP500 settled above the 4550 level as the rally continued. 
• NASDAQ moved towards 15,900 as Microsoft tested all-time high levels. 
• Dow Jones rallied towards the 35,000 level after a successful test of the resistance at 34,600.

SP500

SP500 tests new highs amid strong demand for Technology, Energy, and Financial stocks. Charles Schwab and Morgan Stanley are the best performers in the SP500 index as traders react to their earnings reports. Today’s economic data was mostly disappointing as Retail Sales and Industrial Production missed analyst expectations. However, the market sentiment remains bullish as traders focus on the better-than-expected earnings reports.

SP500 is moving towards the resistance in the 4575 – 4600 range. RSI is in the overbought territory, so the risks of a pullback are rising. However, traders should note that high RSI is natural for strong moves.

NASDAQ

NASDAQ rallied as Microsoft tested all-time high levels. The company revealed that its Microsoft 365 Copilot software would cost $30 per user per month for business customers.

NASDAQ remains overbought due to the strong upside trend. The index should face resistance in the 15,900 – 16,000 range. In case NASDAQ fails to settle above 16,000 in the upcoming trading sessions, traders may decide to take some profits off the table.

Dow Jones

Dow Jones gained upside momentum after it managed to climb above the previous resitance at 34,600. Microsoft’s rally provided significant support to Dow Jones index today.

Dow Jones has quickly moved towards the next resistance level, which is located in the 35,000 – 35,100 range. RSI remains in the moderate territory, so Dow Jones has a decent chance to gain additional upside momentum.

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