NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Retreats As Unitedhealth Group Dives 23%

SP500

SP500 gains ground as traders react to Trump’s comments. President noted that “Powell’s termination cannot come fast enough!” As usual, Trump insisted that Fed should cut rates to provide support to the economy. Today, the ECB cut the interest rate from 2.65% to 2.4%. Donald Trump is worried that European producers will enjoy lower interest rates compared to U.S. – based companies. Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report showed that 215,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 225,000. Housing Starts declined by -11.4% month-over-month in March, while analysts expected that they would fall by -5.3%. Building Permits increased by 1.6% on a month-over-month basis, compared to analyst consensus of -4%.

Currently, SP500 is trying to settle above the 5330 level. In case this attempt is successful, SP500 will move towards the nearest resistance, which is located in the 5390 – 5400 range.

NASDAQ

NASDAQ gained some ground as traders reacted to Trump’s comments. It remains to be seen whether NASDAQ will manage to gain sustainable upside momentum as traders focus on the trade war with China.

If NASDAQ pulls back below the 50 MA at 18,331, it will head towards the next support level, which is located in the 18,100 – 18,150 range.

Dow Jones

Dow Jones pulled back as Unitedhealth Group declined by 23%. The stock suffered a strong sell-off as traders reacted to the disappointing quarterly report.

Currently, Dow Jones is trying to settle below the support level at 39,300 – 39,400. In case this attempt is successful, Dow Jones will move towards the next support, which is located in the 38,400 – 38,500 range. RSI is in the moderate teritory, and there is plenty of room to gain additional downside momentum.

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