NASDAQ Index, SP500, Dow Jones Analysis – Stocks Rebound As Risk Appetite Grows

Key Insights

• SP500 managed to get back above the 4100 level. 
• NASDAQ climbed above 13,000 as demand for tech stocks increased. 
• Dow Jones tested the resistance at 33,500.

SP500

SP500 rebounded above the 4100 level as traders used the recent pullback as an opportunity to increase their long positions. The Initial Jobless Claims report  exceeded analyst expectations, indicating that Fed’s rate hikes have started to put pressure on the job market.

From the technical point of view, SP500 received strong support near the 4070 level and is heading towards the resistance at 4115. A move above this level will push SP500 towards the resistance at 4150.

R1:4115 – R2:4150 – R3:4175

S1:4090 – S2:4070 – S3:4040

NASDAQ

NASDAQ moved higher as Treasury yields tested new lows amid strong demand for U.S. government bonds. Lower yields are bullish for the yield-sensitive tech stocks, which enjoyed strong support in today’s trading session.

NASDAQ quickly moved back above the 13,000 level, which is a good sign for the bulls. If NASDAQ stays above 13,000, it will get to the test of the next resistance at 13,140.

R1:13,140 – R2:13,250 – R3:13,400

S1:13,000 – S2:12,900 – S3:12,750

Dow Jones

Dow Jones continues its attempts to settle above the 33,500 level. There are no big movers among Dow Jones components, so the index failed to gain strong momentum in today’s trading session.

Dow Jones made several attempts to get below 33,300 in recent trading sessions, but these attempts yielded no results. If Dow Jones climbs above 33,500, it will continue its strong rebound and move towards the 33,700 level.

R1:33,500 – R2:33,700 – R3:33,850

S1:33,300 – S2:33,150 – S3:33,000

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