NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Tests New Highs As Amazon Gains 3.5%

SP500

SP500 is moving higher as traders stay bullish in absence of economic reports. Basic materials stocks are among the biggest gainers today as traders focus on the strong rally in precious metals markets. Silver moved above the $80.00 level and is heading towards historic highs. Healthcare stocks have also managed ot gain strong momentum in today’s trading session. Energy stocks were among the losers as traders reacted to pullbacks in natural gas and oil markets. The recent events in Venezuela did not provide sustainable support to oil prices, which is bearish for oil-related stocks.

Currently, SP500 is trying to settle above the resistance at 6940 – 6950. In case this attempt is successful, SP500 will move towards the psychologically important 7000 level. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.

NASDAQ

NASDAQ gains ground amid rising demand for tech stocks. Western Digital, which is up by 15.5%, is the biggest gainer in the NASDAQ index today. The stock gained strong upside momentum amid reports indicating that computer memory chip prices surged due to high demand from AI services.

NASDAQ moved above the 50 MA at 25,515 and is trying to settle above the 25,600 level. In case this attempt is successful, NASDAQ will move towards the nearest resistance at 25,800 – 25,850.

Dow Jones

Dow Jones rallied towards new highs as Amazon gained 3.5%. The rally was broad, and most stocks in the Dow Jones index moved higher in today’s trading session.

If Dow Jones settles above the 49,500 level, it will head towards the psychologically important 50,000 level. It should be noted that RSI has recently moved back into overbought territory, so the risks of a pullback are increasing.

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