NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Tests Historic Highs As Stocks Rebound

SP500

SP500 rallied as traders reacted to the better-than-expected Michigan Consumer Sentiment report. The report showed that Michigan Consumer Sentiment improved from 56.4 in January to 57.3 in February, compared to analyst consensus of 55. Traders used the surprising report as an excuse to buy stocks after the strong pullback. Today’s trading action shows that market sentiment remains bullish despite AI-related worries. Traders are afraid to miss the next leg of the AI rally and are ready to buy dips. Tech stocks were among the biggest gainers in the SP500 index today. Basic materials stocks have also gained strong momentum as traders focused on the rebound in precious metals markets.

SP500 climbed above the resistance at 6870 – 6880 and is moving towards the next resistance level, which is located in the 6940 – 6950 range. In case SP500 climbs above the 6950 level, it will head towards the 7000 level.

NASDAQ

NASDAQ soared as traders rushed to buy tech stocks after the strong pullback. Strategy, which was up by 24%, was the biggest gainer in the NASDAQ index today. The stock rallied as Bitcoin climbed back above the $70,000 level.

Currently, NASDAQ is trying to settle above the 25,000 level. In case this attempt is successful, NASDAQ will move towards the nearest resistance, which is located in the 25,200 – 25,250 range. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.

Dow Jones

Dow Jones climbed above the resistance level at 49,500 – 49,600 amid broad rally in the equity markets. The rally was led by NVIDIA, which gained 7.5% in today’s trading session.

From the technical point of view, Dow Jones is heading towards the psychologically important 50,000 level. A successful test of this level will provide Dow Jones with an opportunity to gain additional upside momentum.

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