NASDAQ Index, SP500, Dow Jones Analysis – Traders Stay Bullish Ahead Of Fed Decision

Key Insights

• SP500 attempts to climb above the resistance at 4575.
• NASDAQ moved above the 15,600 level amid rising demand for tech stocks. 
• Dow Jones settled near the 35,500 level.

SP500

SP500 is trying to settle above the 4575 level as traders stay bullish ahead of tomorrow’s Fed Interest Rate Decision. General Electric, which is up by 6% after the earnings report, is among the biggest gainers in SP500 today. Today, traders had a chance to take a look at the CB Consumer Confidence report, which showed that CB Consumer Confidence increased from 110.1 in June to 117 in July. The better-than-expected report provided additional support to SP500.

Taking a look at the daily chart, SP500 is trying to settle above the resistance in the 4575 – 4600 range. RSI is in the overbought territory, so the risks of a pullback are rising. The upcoming Fed decision and the subsequent commentary will be the key drivers for SP500. If the Fed is less hawkish than expected, SP500 would rally despite the high RSI.

NASDAQ

NASDAQ is also moving higher, supported by rising demand for tech stocks. Traders use the recent pullback as an opportunity to increase their positions in AI-related stocks.

In case NASDAQ manages to settle back above the 50 MA at 15,625, it will head towards the resistance, which is located at the recent highs in the 15,900 – 16,000 range.

Dow Jones

Dow Jones tests new highs as the strong rally continues. Interestingly, half of Dow Jones components are gaining ground in today’s trading session, while the other half has found itself under pressure.

From the technical point of view, Dow Jones continues its attempts to settle above the resistance in the 35,400 – 35,550 range. A move above 35,550 will provide Dow Jones with an opportunity to gain additional upside momentum, although traders should note that RSI is in the overbought territory.

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