NASDAQ Index, SP500, Dow Jones Analysis – Stocks Move Higher As Traders Buy The Dip

Key Insights

• SP500 settled back above the 4500 level. 
• NASDAQ moved towards the 15,400 level but traders remained cautious. 
• Dow Jones gained strong momentum and tested the key resistance at 35,400 – 35,550.

SP500

SP500 gains ground as traders use the recent pullback as an opportunity to increase their long positions at attractive levels. There are no important economic reports scheduled to be released today, so traders focus on general market sentiment. The rebound is broad, and all market segments are moving higher in today’s trading session.

SP500 received support near the 200 MA at 4480, which may serve as an important support level for the index in case the pullback continues. The nearest significant resistance level for SP500 is located in the 4575 – 4600 range, although SP500 may also face some resistance near the 50 MA at 4550.

NASDAQ

NASDAQ has also gained some ground in today’s trading session, although it failed to gain material upside momentum. It looks that traders are worried about sustainability of the AI rally. AI-related stocks have enjoyed strong support in the first half of the year, but this market segment may need more catalysts to test new highs.

Currently, NASDAQ is stuck near the support in the 15,200 – 15,300 range. This support level has already been tested several times and proved its strength. In case NASDAQ declines below the 15,200 level, it will head towards the next support at 14,560 -14,680.

Dow Jones

Dow Jones moved back towards the resistance at 35,400 – 35,550. Today’s rally is broad, and the majority of the Dow Jones components are moving higher.  Apple, which is down by 1.9%, is the only notable loser in the Dow Jones index.

The resistance at 35,400 – 35,550 has been tested many times, and it looks that Dow Jones will need significant catalysts to settle above 35,550. However, RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

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