NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Gains Ground As American Express Soars 7.4%

SP500

SP500 is moving higher as traders focus on Trump’s comments on China and shrug off worries about regional banks. Trump noted that high tariffs on China were not sustainable and indicated that he was ready to talk to China’s Xi. The potential escalation of the trade war with China is the key negative catalyst for markets, so traders are ready to buy stocks amid signs indicating that trade negotiations would continue. Financial stocks managed to gain ground after yesterday’s sell-off as markets calmed down. Basic materials stocks found themselves under pressure as traders focused on the strong sell-off in precious metals markets, which was driven by profit-taking.

Currently, SP500 is trying to settle above the 50 MA at 6683. In case this attempt is successful, SP500 will head towards the nearest resistance level, which is located in the 6700 – 6710 range.

NASDAQ

NASDAQ is moving higher as traders hope that U.S. and China will be able to reach a trade deal.

From the technical point of view, NASDAQ attempts to settle above the resistance at 24,750 – 24,800. If NASDAQ settles above the 24,800 level, it will head towards the next resistance at 25,150 – 25,200. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

Dow Jones

Dow Jones is moving higher, supported by rising demand for financial stocks. American Express, which is up by 7.4%, is the biggest gainer in the Dow Jones index today. The stock rallied as traders reacted to the better-than-expected earnings report.

If Dow Jones manages to settle above the resistance at 46,100 – 46,200, it will gain additional upside momentum and move towards the next resistance level, which is located in the 46,900 – 47,000 range.

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